IDLC SL IPO Investment Insight Bangladesh Steel

Topics: Corporate finance, Balance sheet, Dividend Pages: 2 (1121 words) Published: March 26, 2015
BANGLADESH STEEL RE-ROLLING MILLS LIMITED
IPO Offer Price: BDT 35.0 Lot (Shares): 200 Lot (BDT): 7,000 Resident Bangladeshi Subscription Period: February 01 – February 05, 2015 NRB Subscription Period: February 01 – February 14, 2015

Company Brief


Key IPO Information

Business: The main activity of the company is to
manufacture M.S. products. For its M.S. products, the
company has a backward linage of M.S. billets
production from scraps and sponge iron etc. at Steel
Melting Workshop (SMW).
A large pie of the profit of the company comes from
its investment in associates. The company has two
associates namely BSRM Steel Mills (21.8% stake) and
BSRM Steel (31.2% Stake). BSRM Steel has a 95%
ownership in BSRM Iron & Steel Company and 21.7%
ownership in BSRM Steel Mills as of December 2013.

Manager of the Issue
Alliance Financial Services Limited
Auditor
Rahman Rahman Huq, Chartered Accountants
Face Value (BDT)
Offer Price (BDT)
Lot Size (Shares)
Lot Size (BDT)
Shares to be Issued in IPO (mn)
Issue Size at Offer Price (mn BDT)
Pre-IPO No. of Shares (mn)
Dilution

10.0
35.0
200.0
7,000.0
17.5
612.5
155.9
11.2%

Financial Highlights


Capacity & Utilization: Production of the company
was 106810 MT against installed capacity of 120000
MT in 2013. Utilization level was around 89%.



Lineage: Incorporated in December 1960.



Utilization of IPO Proceeds: Out of the BDT 612.5
million IPO proceeds, BDT 220.2 million (36.0%) will
be used to Pay the retention money for machinery,
BDT 167.3 million (27.3%) will go for construction of
shed for finished goods, BDT 204.0 million (33.3%)
will be used to repay loan and the rest for IPO
expense (BDT 21.0 million; 3.4%).



Reporting cycle: January-December.

Pre-IPO & Post-IPO Capital Structure
Particulars
Pre IPO Paid-up Capital
Initial Piblic Offering
Post IPO Paid-up Capital

Shares

Mn BDT

155.85

1,558.5

17.5

175.0

173.35...
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