Bashundhara Paper Mills IPO lottery held

The lottery for allotting ordinary shares under an initial public offering (IPO) of Bashundhara Paper Mills Ltd (BPML) was held at International Convention City Bashundhara (ICCB) in the city on Wednesday.The results of the long-awaited IPO lottery will be available on the websites of DSE, CSE and Bashundhara Paper Mills.

A consultation wing of the Electrical and Electronic Engineering Department of BUET (Bangladesh University of Engineering and Technology) facilitated the IPO lottery.

Safwan Sobhan, Vice-Chairman of Bashundhara Group, also the managing director of Bashundhara Paper Mills Ltd, was present at the IPO lottery event.

BPML’s independent director Khawaja Ahmedur Rahman, company secretary M Naseemul Hye FCA, Bangladesh Securities and Exchange Commission (BSEC) representative Badrul Islam Shaon and representatives from Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) were also present at the event.

Speaking on the occasion, Safwan Sobhan said BPML is excited to get new shareholders through this initial public offering.

“IPO does not only help raise capital but also paves the way to establish a greater relationship with the general investors and stakeholders,” said the Bashundhara Group vice-chairman.

He also said Bashundhara Group is no stranger to the capital market as one of business units, Meghna Cement, is listed with DSE and CSE for last two decades.

Of the total 26,041,666 shares, 10,416,666 shares were allocated among the general investors, affected small investors and non-resident Bangladeshi investors through the IPO lottery.

Earlier, a total of 15,625,000 shares were allocated among 474 eligible investors (EI) under book building method at the cut off price of Tk 80 per share.

Bashundhara Paper Mills will raise capital worth of Tk 200 crore under book-building method. Of the amount, Tk 125 crore will be raised by issuing shares to the eligible investors while Tk 75 crore will be raised by issuing shares to general investor at 10 percent discount on the cut-off price.

IPO subscription to the BPML was open to resident and non-resident Bangladeshis during the period of April 30 to May 09.

Total applications by the general investors were nine times higher than the shares earmarked for the investors.Company sources said the fund raised from IPO will be spent on buying new machinery, repaying loans and bearing the IPO expense and other costs of the company.

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. BSEC approved the IPO of the company to raise capital of Tk 200 crore from the market through book-building method on January 30.

Bashundhara Paper Mills, a concern of country’s leading business conglomerate Bashundhara Group, has three production units in Narayanganj and Munshiganj.

According to the financial statement for the year ending on June 30, 2016, the company’s net asset value (NAV) per share (EPS) was Tk 30.49, including revaluation reserve. The weighted average of earnings per share (EPS) was Tk 1.46.