September 1, 2020 (MLN): Power cement has announced issuance of 244 million preference shares as right issue to existing shareholders which is 23% of current share capital.

These preference shares will have voting rights, offer cumulative dividend at 6M KIBOR plus 1.5% and conversion option (to ordinary shares) after one year of investment, a report by Ismail Iqbal Securities highlighted.

The report underscored that it seems to be a cheaper alternative to take exposure in ordinary shares with the current price of Rs 9 per share.

The report further stated that under the both scenarios of conversion i.e. Dividend accrued but not paid or Dividend paid, investors will get more ordinary shares in proportion to preference shares.

Meanwhile, it is worth mentioning that today is the last day of trading of unpaid rights i.e. September 1, 2020.

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