Bashundhara Paper Mills allowed conducting bidding process | daily-sun.com

Bashundhara Paper Mills allowed conducting bidding process

Business Desk     28th August, 2017 07:14:10 printer

Bashundhara Paper Mills allowed conducting bidding process

The Bangladesh Securities and Exchange Commission (BSEC) has allowed Bashundhara Paper Mills to conduct bidding process for determining cut-off price in a bid to raise fund worth about Tk 2.0 billion under book building method.

 

Bashundhara Paper Mills authority has received the the regulatory permission from the BSEC on Sunday.

 

The regulatory consent came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC). BSEC Chairman M Khairul Hossain presided over the meeting.

 

After conducting road show, Bashundhara Paper Mills earlier submitted IPO proposal to the securities regulator to raise the fund.

 

Now the company will conduct price bidding of shares required to determine the cut-off price at which institutional investors will get shares.

 

The company’s IPO fund will be used to purchase machinery, repay bank loans and bear the IPO expense.

 

According to financial statement for the year ended on June 30, 2016, the company’s net asset value (NAV) per share (EPS) is of Tk 30.49, including revaluation reserve, whereas the value is of Tk 15.79 without revaluation reserve.

 

The weighted average of earnings per share (EPS) was Tk 1.46 for the year ended on June 30, 2016.

 

The Bashundhara Paper Mills produces different types of papers such as writing and printing paper, white printing paper, photocopy and sanitary paper, multipurpose paper, colour printing paper, ledger printing paper and bidi paper.

 

Besides, the Bashundhara Paper Mills also produces different types of tissues such as facial tissue, pocket tissue, toilet tissue, kitchen towel tissue and wet tissue.

 

AAA Finance and Investment is working as issue manager for Bashundhara Paper Mills.

 

At Sunday’s meeting, the BSEC also approved Tk 4.50 billion mudaraba subordinated bond to be issued by First Security Islami Bank Limited (FSIBL).

The redemption of the company’s bond will be completed within seven years.

 

The FSIBL will raise the fund through bond issue to fulfill the condition of Tier-II Capital Base.

 

The financial institutions, banks, insurance companies, corporate houses, asset management companies, mutual funds and any general investors will be allowed to purchase the units of the bond through private placement.


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