Daily Star :Marico gets nod to raise Tk 13.42cr through IPOMarico Bangladesh Limited (MBL), a subsidiary of Indian Marico Limited, has received the green light from the stock market regulator to raise more than Tk 13.42 crore from Bangladesh capital market.
The multinational company will spend the fund, raised through initial public offering (IPO), to repay bank loans, said people close to the issue.Each of the company's 14.92 crore shares has been fixed at Tk 10 in addition to a premium of Tk 80 per share, Securities and Exchange Commission officials said.
“We have approved the Marico Bangladesh IPO at a meeting,” Anwarul Kabir Bhuiyan, executive director of SEC, told reporters after the meeting on Thursday.The company had sought Tk 100 in premium per share but later revised the figure down to Tk 80 in line with securities rules.
Net asset value per share of MBL is Tk 32.69 and annualised earnings per share are Tk 11.12, according to Bhuiyan.The SEC approved the Tk 486.08 crore IPO of the country's largest mobile operator on Thursday.
“The approval of MBL IPO, along with Grameenphone, will meet the investors' demand for new and quality shares to some extent," he said.
Market analysts said issues such as Grameenphone and Marico were timely as the market is bullish and investors are looking for new quality shares. The two issues will help boost investor confidence in the market, they added.
According to the MBL website, it holds a leadership position in the fast moving consumer goods (FMCG) space.MBL's products in coconut oil, hair care and skin care reach out to more than 4.5 lakh outlets in Bangladesh.
The company with Tk 28.35 crore in paid-up capital generated a turnover of about Tk 26.5 crore in fiscal 2007-08.
IDLC Finance is the issue manager for Marico IPO.Starting operation in Bangladesh in 2002, the company markets well-known brands such as Parachute, Aromatic, Camelia, Hair Code and Beliphool with significant market shares.
Ranked sixth most-trusted brand out of 849 across the category by Bangladesh Brand Forum in 2008, Parachute holds a 73 percent market share in the coconut oil category.
One in every three Bangladeshis is a MBL consumer, while over 0.92 crore consumer packs from Marico reach consumers every month, according to one estimate by the company.
Marico's focus on sustainable profitable growth is manifest through its consistent financial performance, as it has made substantial profit over the last five years. MBL has established its own factory, Corporate Office and depots around the country.