• Monday, Aug 02, 2021
  • Last Update : 03:37 pm

Baraka Patenga Power’s IPO subscription from June 13

  • Published at 05:49 pm May 12th, 2021
Baraka Patenga Power factory
Courtesy

The power company is raising Tk225 crore from the public via the book-building method

General investors will get the chance to sign up for the stock sale of Baraka Patenga Power Limited from June 13, which will continue until June 17.

The power company is raising Tk225 crore from the public via the book-building method.

According to the book-building method of the initial public offering, 60% of the company's shares will be issued to eligible institutional investors, who have set the cut-off price at Tk32 each through bidding.

The general investors will get its IPO shares at Tk29 each, a 10% discount on the cut-off price, as per the book-building method.

Of the IPO proceeds, Baraka Power Patenga, whose parent company Baraka Power, is already listed on the bourses since 2011, intends to spend Tk144.3 crore on equity investments in Karnaphuli Power and Baraka Shikalbaha Power and Tk74.9 crore to pay back bank loans.


Also Read - Baraka Patenga Power wants to knock about with big players


Baraka Power Patenga holds 51% shares of both the two companies, whose main role is to set up power plants and supply electricity to the national grid.

The equity investments would be used to settle the deferred obligations for genset procurement.

A genset refers to an equipment whose function is to convert the so-called heat capacity into mechanical energy and then into electrical energy.

If the funds are not collected from the IPO, then both the companies will have to look for alternative sources of financing to meet such deferred obligations, which might be much costlier resulting in lower profitability, said Gulam Rabbani Chowdhury, chairman of Baraka Power Patenga.

After the repayment of long-term debt of Baraka Power Patenga with a portion of the IPO proceeds, the company's profitability would increase as it would lessen the strain on cash flow.

“Our mission is to become the largest power generating company in the private sector by developing more power plants across the country,” Chowdhury said.

Established in 2011, Baraka Power Patenga is one such company.

The company cannot declare bonus dividends for five years from the date of issuance of consent letter over its IPO.

The commission also directed the company to hold 51 per cent shares of its subsidiary companies at all times.

In its 2019-20 financial year that ended on June 30 last year, the company logged in Tk67.4 crore as profit, up a staggering 123.9%.

LankaBangla Investment is the issue manager for the company's IPO process.

70
Facebook 51
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail