BSEC Approves Tk1,529cr Preference Shares for PGCB Govt

The Bangladesh Securities and Exchange Commission (BSEC) has approved the issuance of preference shares worth Tk1,529 crore by the Power Grid Company of Bangladesh (PGCB) in favour of the government.

Under the decision, PGCB will issue 152.92 crore irredeemable and non-cumulative preference shares at a face value of Tk10 each. The shares will be allotted to the Secretary of the Power Division under the Ministry of Power, Energy and Mineral Resources.

The issuance is part of a process to convert share money deposits into equity against government funding received for development projects. According to company sources, PGCB received significant government funds in FY2024–25, against which the preference shares are being issued.

In earlier phases, PGCB has already issued preference shares worth Tk10,146 crore against similar government financing.

At the end of March 2026, the company’s outstanding share money deposits stood at Tk3,376 crore. Under the existing financing structure, 60% of government-disbursed funds are treated as equity while the remaining portion is recorded as loans, with the equity portion reflected as share money deposits.

The latest move also aligns with a 2020 directive from the Financial Reporting Council, which requires companies to convert share money deposits into capital within six months and include them in financial calculations such as earnings per share and dividends.

PGCB has gradually opted for preference shares instead of ordinary shares for government capitalisation. Preference shareholders are entitled to dividends before ordinary shareholders at a fixed rate.

In the first nine months of FY2025–26, PGCB reported revenue of Tk2,386 crore and a profit of Tk570 crore. In the same period last year, the company posted revenue of Tk2,218 crore but recorded a loss of Tk31 crore due to foreign currency fluctuations.

Company officials say the preference share issuance is an ongoing annual process linked to fiscal-year government funding.