Bashundhara received the regulatory permission for IPO from the Bangladesh Securities and Exchange Commission

Bashundhara Paper Mills received the regulatory permission from the BSEC to conduct bidding process for determining cut-off price in a bid to raise fund worth about Tk 2 billion under book building method. According to the announcement, the regulatory consent came at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

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 company also produces different types of tissues such as facial tissue, pocket tissue, toilet tissue, kitchen towel tissue and wet tissue.

Earlier Bashundhara announced plans to increase tissue  production capacity in Bangladesh in four times in the next five years.

About Bashundhara Paper Mills Limited:

The company pioneered the private sector paper producers in Bangladesh. It is country’s largest paper and tissue manufacturing company.

Source: Woodbizforum