A tripartite agreement between Bashundhara Paper Mills Limited, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) was signed on Tuesday for using electronic subscription system software and technical support to determine the cut-off price under book building method for the company’s initial public offer (IPO).
Bashundhara Paper Mills Ltd Company Secretary Naseemul Hye, FCS, Dhaka Stock Exchange Listing Manager Jalilur Rahman and Chittagong Stock Exchange Deputy General Manager (IT) Hasnain Bari signed the agreement on behalf of their respective sides during a function at DSE auditorium in the city.
DSE Managing Director AKM Mazedur Rahman, Chief Regulatory Officer Ziaul Hasan Khan, Bashundhara Group Executive Director (Accounts and Finance) Mirja Mujahidul Islam, and Chairman of the issue manager (AAA Finance and Investment Ltd) Mohammad A Hafiz were also present at the deal signing ceremony.
Bashundhara Paper Mills has already received the permission from Bangladesh Securities and Exchange Commission (BSEC) to conduct the bidding process for determining the cut-off price under book building method for its IPO to raise funds worth about Tk 2.0 billion.
After signing the agreement, Bashundhara Group officials said Bashundhara Group’s concern Meghna Cement Mills has been the top choice of the investors in the capital market. The company earned the confidence of investors by providing yearly dividends. Bashundhara Paper Mills will also continue the same legacy.
“Bashundhara Group is one of the leading business conglomerates in the country and has been working for the welfare of the nation and its people. Bashundhara Group’s sister concern Meghna Cement Mills remains in a good position in the market. Bashundhara Paper Mill is also entering the market to continue this trend,” said Company Secretary Naseemul Hye.
He said that the annual turnover of Bashundhara Paper Mills is around Tk 1,000 crore, the profit position is also good and the company is one of the largest taxpayers in the country. "The extent of the company’s success will rise further," he continued.
The DSE managing director said the stock exchanges always want to bring big companies like Bashundhara Paper Mills and hope that Bashundhara Group will bring more of its companies to the capital market.
Referring to the huge turnover of Bashundhara Paper Mills, A Hafiz said very few companies have the turnover figures of around a thousand crore taka.
The company’s IPO fund will be used to purchase machinery, repay bank loans and bear the IPO expense.
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.
It is also the market leader in different types of tissues such as facial tissue, pocket tissue, toilet tissue, kitchen towel tissue and wet tissue.
According to the 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.
AAA Finance and Investment is working as issue manager for Bashundhara Paper Mills.