On December 21 last year, the BPDB expressed its intention to sell 34,353,440 shares out of its total holdings of 603,259,748 shares
The Bangladesh Power Development Board (BPDB), a corporate sponsor of Power Grid Company of Bangladesh, has completed its partial stake sale in the company amounting to 34,353,440 shares worth approximately Tk 161.8 crore.
Power Grid made the announcement on Sunday on the website of the Chittagong Stock Exchange.
On December 21 last year, the BPDB expressed its intention to sell 34,353,440 shares out of its total holdings of 603,259,748 shares at the prevailing market price within 90 working days.
It took 58 trading sessions to offload the shares. The closing price of Power Grid stock went up as high as Tk 59.5 during the period.
BPDB sold approximately 93 per cent of the shares at the Dhaka bourse, according to the announcement made by Power Grid on the website of Dhaka Stock Exchange on Monday.
The share price of Power Grid advanced 2.2 per cent during the session to close at Tk 47.1 on Monday following the announcement on completion of the stake sale.
Power Grid posted earnings per share of Tk 2.51 during the July-December period of 2020.
Its shares traded between Tk 36.10 and Tk 55.20 in the past year.
As of February 28 this year, directors and sponsors owned 80.10 per cent of the company while 14 per cent was owned by institutes, 0.13 per cent by foreign investors, and 5.77 per cent by the general public.
Directors and sponsors owned 84.64 per cent a year ago.
The company’s paid-up capital is Tk 712 crore, and authorised capital is Tk 1,000 crore.
The government has Tk 5,071 crore invested in Power Grid as share money deposits, which will gradually be converted into shares.
In November 2019, the Bangladesh Securities and Exchange Commission approved the issuance of 251,814,000 shares by Power Grid against Tk 251.81 crore investment of BPDB.
As the 251,814,000 shares are locked-in as a strategic investment, they cannot be transferred or traded without prior approval of the securities regulator.
Power Grid was formed to operate and maintain the power transmission system throughout the country by taking over assets and liabilities of the power transmission system of BPDB. It listed with the stock market in 2006.
Power Grid is a consistently profit-making company -- it made a profit of Tk317 crore in the 2019-20 fiscal year.
Bangladesh is currently on track to ensure 100 per cent electrification by this year.
Officials and experts note that the country is already able to supply electricity to 97 per cent of the population as the installed power generation capacity is now well in excess of 23,000 megawatts (MW). The remaining 3 per cent should all have access to power by this year.
But the nation's overall power system utilisation fell again in the 2019-20 fiscal year to just 40 per cent, down from 43 per cent in the FY19, according to the BPDB.
A figure of 40 per cent utilisation indicates significant surplus capacity within the power system.