Krishibid Feed Limited has re-applied to Bangladesh Securities and Exchange Commission (BSEC) for issuance of an Initial Public Offering (IPO) to raise Tk30 crore from the capital market (using fixed price method) to expand its business.
Earlier, the company had submitted an application for IPO to the commission on 28 October 2019. But, on 12 August 2020, the company withdrew this application, citing covid-19 concerns.
Krishibid Feed Limited is primarily engaged with the manufacture, sales and distribution of all sorts of feed for poultry, fish and cattle.
The company also manufactures, distributes, exports and imports all kinds of agro feed - anywhere in Bangladesh and abroad.
Owing to the global Covid-19 pandemic, like many others, Krishibid Feed's business has been significantly impacted, and production and supply have also suffered serious setback.
Fearing that the pandemic might disrupt their business further, the company decided to withdraw its IPO application.
Md Sifat Ahmed Choudhury, finance director of Krishibid Feed, said, "Our business has been dealt a heavy blow with the pandemic. But the situation is slowly improving."
He said, "Our company produces quality feed for the industry. Hence, the business is showing signs of improvement with the accelerating post-pandemic recovery."
"We have received some purchase orders from local buyers," he added.
Krishibid Feed wanted to use Tk7 crore for buildings and other construction, Tk4.09 crore for plants and machinery, Tk10 crore for repayment of bank loans, Tk2.85 crore for diesel generators and Tk4.07 crore for delivery vans.
Aman Feed, National Feed, Provita Feed, Aftab Feed, Kazi Farms and Quality Feeds Limited are major competitors.
During the last fiscal year, Krishibid Feed's capacity was around 39,000 MT feed. However, it could utilise 55.85% of the volume.
In the 2022-23 fiscal year, the company's projected capacity will be around 47,000 MT, and it hopes to utilise 82.25% of the volume.
Company's authorised capital is Tk75 crore. Its pre-IPO paid-up capital is Tk27.50 crore and post-IPO paid-up capital will be Tk57.50 crore.
According to the company's audited financial statement, as of June 30, 2020, its net profit was Tk4.78 crore, compared to Tk5.41 crore during the same period of the previous year.
Its sales revenue was Tk84.87 crore, vs Tk89.92 crore during the same period of the previous year.
At the same time, its earnings per share was Tk1.74 and net asset value per share was Tk1.97.
Incorporated in November 2010, Krishibid Feed Ltd started operation on January 1, 2012.
According to the Feed Industries Association Bangladesh, the feed manufacturing industry has steadily grown in the country, and it has seen an annual growth of 15-18% for the last several years.
There are 201 feed factories registered with the Department of Livestock Services.
The annual demand for poultry feed in Bangladesh is around 6.5 million tonnes, and this is expected to increase to 7 million tonnes in 2021.
The amount of imported poultry and fish feed currently stands at almost zero. Some 98% of the total demand is being met by domestic commercial production, with handmade feed taking up the remaining 2%.