Bashundhara Paper Mills Ltd. Company Information & IPO Result

BASHUNDHARA PAPER MILLS LTD LOTTERY RESULT: Published.

UPDATE: The Bashundhara Paper Mills Limited IPO lottery will be held on 30 May 2018 at 11 am at the Basundhara International Convention Center – Hall#1, Basundhara, Dhaka.

UPDATE: As per final prospectus, Bashundhara Paper Mills Ltd. subscription start from 30 April’18 to 9 May’18 (Including NRB).

The Bangladesh Securities Exchange Commission (BSEC) approved IPO Bashundhara Paper Mills Ltd. on Tuesday, 30 January 2018 at their 626 nos Board Meeting. Presided over by BSEC Chairman Prof. Dr. M Khairul Hossain to raise Tk. 200 crore by offloading 2.60 crore shares at a price of Tk. 72 to Tk. 80 each share. Meanwhile, the commission on August 26 last year allowed Bashundhara Paper to conduct eligible institutional investors bidding under the book building method of public issue rules.
The commission, under new public issue rules, decided to offer BPML’s IPO shares to general and non-resident Bangladeshi investors at 10 percent discount of cut-off price which was set by the bidding of the institutional investors.
As per the bidding of EIIs, the cut-off price of the company’s shares stands at Tk 80 which will be allotted to general investors along with NRB investors at Tk 72 each. Under the amended public issue rules, of the 2.6 crore IPO shares of BPML, 1.56 crore will be allocated to EIIs, 1.04 crore shares will be offered to the General and NRB investors.
Company Information, IPO Application Form, Prospectus & Result is given below:

COMPANY INFORMATION:

Name: Bashundhara Paper Mills Ltd. (BMPL)
Incorporation: The company was incorporated in 1993 as a private limited Company and was subsequently converted into a public limited company on 30 January 1994.
Commercial Operation: BMPL was started commercial operation on 1 March 1997.
Authorized Capital: Tk. 5,000,000,000 divided into 500,000,000 ordinary shares of Tk. 10.00 each
Paid Up Capital (Before IPO): Tk. 1,477,497,750 divided into 147,749,775 ordinary shares of Tk. 10.00 each
Paid Up Capital (After IPO): Tk. 1,737,914,420 divided into 173,791,442 ordinary shares of Tk. 10.00 each

Management Body: 1) Mr. Ahmed Akbar Sobhan, Chairman
2) Mr. Safwan Sobhan, Managing Director
3) Md. Nazmul Alam Bhuiyan,
Nominated by: East West Property Development (Pvt.) Ltd. & Director
4) Mr. Md. Imrul Hassan, Director
5) Mr. Zeaur Rahman, Independent Director
6) Mr. Khawaja Ahmedur Rahman, Independent Director

NATURE OF BUSINESS:

Generally, all writing and printing are done on paper. Paper is also widely used as wrapping and packaging material as well. The significance of paper and paper products in modern life is obvious to everyone now a day.

In Bangladesh, the paper industry went into operation during the late 1950s when the Karnaphuli Paper Mill (KPM) at Chandragona in Chittagong was established. Following that, Bangladesh’s private sector paper mills started in the early 1980s in Narayanganj as well. Gradually the private sector has taken over the paper sector in the country and is now producing 90-95% paper products used in Bangladesh.

However, at present, around 80 paper mills are operating throughout the country. They produce different grades of paper e.g., writing, printing, packaging, liner, media, simplex, duplex, board, newsprint, cigarette, etc. The major players of the industry are listed below – Local private mills account for a market share of around Tk. 400 core/ month; i.e. 60000 MT/Month which tends to around 5000 crores per year.

Bashundhara Paper Mills Ltd possess around 30% market share at this moment. Besides, around 40000 MT paper products are also imported in each month. Considering above circumstances we might conclude that the market size of paper products is around 8000 crores/ year.

ABOUT THE COMPANY:

Bashundhara Group has same nature namely “Bashundhara Newsprint & Duplex Board Industries Limited (Former Shahjalal News Print Industries Ltd.) and “Bashundhara Tissue Industries Limited” (Former Freyschmidi Tissue Limited) amalgamated with BPML on October 10, 2009. After the amalgamation of all three companies carrying out its business as a single legal entity and operated three separate units as “Unit 1”, “Unit-2” and “Unit -3” for administrative purpose only. Presently the Authorized Capital of the Company is BDT 5000 Million and Paid-Up Capital stands at BDT 1477.49 Million.

PRODUCT:

Unit-1:
produces very good Quality & International standard MG Paper, Offset Paper, White Writing & Printing Paper, Brown Wrapper, Brown Liner, Newsprint paper, Coated/Uncoated paperboard, A4 paper, Glassine Paper, Stiffener, Ledger Paper, PP Woven Bag, Sack Paper also time to time produce Plug wrap, Cigarette Tipping Paper on request of different Cigarette manufacturing companies.

Unit-2:
Unit-2 of Bashundhara Paper Mills Limited was set up in 1994 & operates three modern plants in producing newsprint, white writing/printing paper, duplex board, liner paper, Kraft paper, Art card, art paper and allied products. The first unit produces duplex boards and other industrial packing papers used in packaging industry. An offline coater produces coated duplex board & Art card in this unit. It was formerly known as Bashundhara Newsprint & Duplex Board Limited.

Unit-3:
Unit–3 of Bashundhara Paper Mills Limited, formerly known as Bashundhara Tissue Industries Limited, was set up in 1995. It is the country’s first basic tissue manufacturing factory in the face of growing popularity of tissue with fast-changing urban lifestyle and elevation of living standards as a whole. The company is manufacturing a wide range of products including facial tissue, pocket tissue, wet tissue, green tissue, sanitary napkin, baby diaper, toilet tissue, kitchen towel, cigarette paper, glassine paper, and hard tissue, hand gloves and paper carton container.

NAME OF SUBSIDIARIES:

Bashundhara Paper Mills Ltd. has no subsidiary company. Therefore such information is not applicable

to the Company.

ADDRESS:

Registered Office:
Plot # 125/A, Road #2, Block # A, Bashundhara R/A, Dhaka-1229
Phone: + 88-02-8432008-17 (Hunting)
Fax: +88-02-55037257

Corporate Head Office:
Bashundhara Paper Mills Ltd.
Plot #03 (Umme Kulsum Road), Block #G, Bashundhara R/A, Dhaka-1229
Tel: +88-02-8401024-8,
Fax: +88-02-8401401

Other Office:

Bashundhara Paper Mills Ltd.

Plot # 56/A, Umme Kulum, Road-2ne Avenue, Block # C, Bashundhara R/A, Dhaka-1229

Tel : +88-02-8431256-8,
Fax : +88-02-55037257

Factory Office:

Unit 1: Meghnaghat, Baranagar, P/O: Newtown, Sonargaon, Narayangonj;

Tel. 01199-850865, Fax: 840-2-9343415

Unit 2: Meghnaghat, P/O: Newtown, Sonargaon, Narayangonj;

Tel. 01199-865814, Fax: 0447600092

Unit 3: Anurpura, Gazaria, Munshigonj;

Tel. 01199-8555694, Fax: 04476001562

Web Address: www.bashundharapapermills.com

MAJOR FINANCIAL INFORMATION AS FOLLOWS:

Figure in Tk.’000

Particulars	30-06-16	31-12-15	31-12-14	31-12-13	31-12-12
Revenue	5,692,734	10,435,756	10,335,095	10,501,929	10,231,759
Gross Profit	1,029,117	1,802,630	1,790,011	1,711,986	163,4031
Net Profit after tax	316,578	264,673	218,123	97,071	65,003
Total Assets	18,908,849	1,8087,816	17,078,551	16,352,157	14,674,490
Share Capital	1,477,498	1,477,498	495,356	190,522	190,522
Retained Earnings	855,509	548,409	324,462	377,552	249,045
EPS (Diluted)	2.14	3.63	2.99	0.66	0.44
EPS (Basic)	2.14	3.63	4.4	5.1	3.41
NAV per Shares	30.49	60.88	37.60	132.5	127.40

BASHUNDHARA PAPER MILLS LTD. EPS & NAV:

As per the financial statement for the year ended on June 30, 2016, the company’s net asset value (NAV) stood at Tk 30.49 per share (with revaluation) and Taka 15.79 per share (without revaluation), whereas the weighted average of EPS was Tk 1.46.

ISSUE MANAGER:

AAA Finance and Investment Ltd. working as the manager to the issue.

WHY PUBLIC OFFERING:

Bangladesh Securities Exchange Commission (BSEC) approved IPO of above Co. on 30 January 2018. The companies will raise a fund worth Taka 2,000.00 million for the purpose of capital machinery purchase, bank loan paid along with bearing the IPO cost.

NOS. OF SHARE OFFER For EI: 1,56,25,000
NOS. OF SHARE OFFER For INDIVIDUAL INVESTORS: 1,04,16,667
Total VALUE OF IPO: Tk. 1,999,999,952/=
INDIVIDUAL INVESTORS IPO VALUE: Tk. 749,999,952/=
FACE VALUE: Tk. 10/=
PREMIUM VALUE: Tk. 62/=
MARKET LOT: 100
TOTAL PRICE: TK. 7,200.-
SHARE ALLOTMENT: Individual Investors =104,167 lot.
20% of the securities for general public shall be reserved for Affected Investors.

** The Company will collect IPO money through BSEC new rules and the new rule is “BROKER HOUSE SHOULD COLLECT IPO MONEY ONLY”.

SUBSCRIPTION DATE:

The Company’s Subscription date will start from 26 April 2018 to 9 May 2018 and the final prospectus is coming soon.

DOWNLOAD IPO FORM HERE:

Res./EI./NRB Application Form

Bashundhara Paper Mills Limited PROSPECTUS

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