Index Agro to debut on bourses Wednesday

Share trading of Index Agro Industries Limited will commence on both the Dhaka and Chittagong stock exchanges on Wednesday (7 April) under the 'N' category.

The poultry and fish feed maker raised Tk50 crore on the capital markets with its initial public offering (IPO) under the book building method.

The company will use these funds to construct buildings, execute other civil works, acquire new machinery and equipment, and meet the cost of the IPO process.

The trading code or scrip code of the company will be 'INDEXAGRO' on both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). The company code will be 99643 in the DSE, and will have the scrip ID 22034 for the CSE.

Earlier, on 10 September last year, Index Agro secured the approval of the Bangladesh Securities and Exchange Commission (BSEC) for determining the cut-off price of its shares for eligible investors (EI).

The cut-off price was set at Tk62 per share for eligible investors, while general investors got the shares at a 20% discounted price of Tk50.

Based on the BSEC's approval, Index Agro's 72-hour bidding on the electronic system of stock exchanges began on 1 November, 2020, and ended on 4 November.

After determining the cut-off price, the securities regulator approved the company's final IPO on 23 December.

According to its audited financial statement, as of 30 June, 2019, Index Agro's consolidated earnings per share (EPS) was Tk7.07. Its weighted average Earnings per Share or EPS for the last five years was Tk5.60.

AFC Capital Limited and EBL Investments Limited are the issue managers for the company's IPO.

Index Agro Industries Limited was incorporated in Bangladesh on 13 September, 2000. The company started commercial operations on 1 July, 2004.

Though it has no subsidiary company, it has an associate company named X-Ceramics Ltd which is engaged in manufacturing ceramic tiles.