They will raise Tk50 crore from the capital market
Index Agro Industries, a local poultry and fish feed manufacturer, is set to make its debut on the bourse on Wednesday.
To enhance its production capacity, they will raise Tk50 crore from the capital market.
The company will begin trading under the N category and move to another bracket depending on the amount of dividend it announces.
According to the recent disclosure, the net profit of the company stood at Tk13 crore in the first half of FY21. For the same period, pre initial public offering (IPO) earnings per share (EPS) Stood at Tk3.36, whereas Post-IPO EPS was recorded Tk2.77.
General investors already have the option to subscribe for a slice of Index Agro’s initial stock sale for a week, which began Monday at Tk50 a share, which is a 20% discount on the price the institutional investors paid.
Usually, general investors get shares at a 10% discount, but Index Agro is offering a bigger discount.
Index Agro’s top line grew by a five-year compound annual growth rate (CAGR) of 11.8%.
The top line refers to a company’s gross revenue or sales.
In fiscal 2016-17, the top line growth rate declined because of the volatile day-old chicks’ market. About one-third of Index Agro’s revenue comes from day-old chicks.
However, the year-on-year top line growth flattened in 2018-19 and 2019-20 financial years, according to a Brac-EPL study.
AFC Capital and EBL Investments are the issue managers for the company's IPO.
The company held its IPO lottery draw on March 22 to allocate IPO shares.
The Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Index Agro Industries on December 23, 2020.
The IPO subscription of the company was held between February 22 and February 28, 2021.
Index Agro Industries was incorporated on September 13, 2000 as a private limited company and started its commercial operation on July 01, 2004
The principal activities of this Company are manufacturing and marketing of poultry feed, fish feed and producing Day Old Chicks (DOC).
Index Agro has no subsidiary company but it has an associate company named X-Ceramics Ltd. where the issuer holds 24.39% shares. X-Ceramics Ltd. is engaged in manufacturing ceramic tiles in Bangladesh.