Renata’s preference shares to be fully convertible

The board of Renata PLC, a listed pharmaceutical company, has decided to revise the structure of its preference shares, which were recently approved to raise up to Tk 325 crore, according to a disclosure on the Dhaka Stock Exchange website.

Preference shares are a type of company stock that pays dividends to shareholders before common stock dividends are issued.

Most preference shares offer a fixed dividend, and their holders typically do not have voting rights, unlike common shareholders, according to Investopedia.

Last year, Renata proposed issuing non-cumulative, non-participative, redeemable or fully convertible preference shares at the issuer's discretion. The proposal was duly approved by the shareholders.

However, in a board meeting held on June 18, 2025, the company decided to revise the structure.

The preference shares will now be non-cumulative, non-participative, and fully convertible, meaning they will no longer be redeemable.

Redeemable preference shares are those that can be bought back by the issuing company after a specified period.

Convertible preference shares, on the other hand, can be converted into ordinary shares of the company after a certain period.