Bangladesh Securities and Exchange Commission (BSEC) has approved the initial public offering (IPO) of Bashundhara Paper Mills Limited to raise funds worth Tk 200 crore from the market through book building method.
The securities regulator approved the IPO proposal on Tuesday at the commission’s 627th meeting at its office in the capital.
As per the BSEC approval, Bashundhara Paper Mills will raise the capital by issuing 26,041,667 ordinary shares. Of the total shares, 15,625,000 will be issued to eligible investors (EIs) at the cut off price of Tk 80 each.
The remaining 10,416,666 shares will be issued to general shareholders including non-resident Bangladeshis at 10 percent discount on cut off price. The general investors will get the shares at Tk 72 each according to latest amendments to public issue rules.
AAA Finance and Investment is the issue manager of the IPO.
Earlier on August 27, Bashundhara Paper Mills received the permission from BSEC to conduct the bidding process for determining the cut-off price for its IPO.
The cut-off price for each share of Bashundhara Paper Mills Limited (BPML) was set at Tk 80 through book building system that ended on October 19. Citing the company’s financial statement for the year ending on June 30, 2016, a press release issued by BSEC said that the company’s net asset value (NAV) per share (EPS) was Tk 30.49 whereas the net asset value was Tk 15.79 without revaluation of reserve. The weighted average of earnings per share (EPS) was Tk 1.46.
Company sources said the funds raised from the IPO will be spent on buying new machinery, repaying loans and bearing the IPO expense and other costs of the company.
Bashundhara Paper Mills, a concern of country’s leading business conglomerate Bashundhara Group, produces a wide range of paper and paper products. The company also exports paper. It has three production units in Narayanganj and Munshiganj.