Krishibid Feed Limited has withdrawn its application of Initial Public Offering (IPO) from the Bangladesh Securities and Exchange Commission (BSEC).
The company sent a letter to the commission in this regard on August 12, 2020.
The principal activity and the nature of the business of Krishibid Feed is to manufacture, sell and distribute all sorts of poultry feed, fish feed and cattle feed.
Apart from that, the company can manufacture, distribute, export and import all kinds of agro feed anywhere in Bangladesh and abroad.
The company wanted to raise Tk30 crore from the stock market to expand its business.
Due to the worldwide Covid-19 pandemic, Krishibid Feed's business, like many others, has been affected seriously. Especially its production and supply sides were affected significantly.
The management of Krishibid Feed is concerned that the pandemic would further disrupt their business. So, they decided to withdraw the application for IPO.
Moreover, an official of the company's issue manager - MTB Capital Ltd told The Business Standard that some officials of the company are infected with Covid-19. So, they are not able to work to meet the requirements for IPO documents during the pandemic.
Meanwhile, sources at the BSEC said the company submitted the application for IPO to the commission on October 28, 2019. Later, the regulator had asked the company to provide some documents that were missing. The time for submitting those documents was over on August 12, 2020.
The commission got a withdrawal letter from the company instead of the required documents.
Krishibid Feed wanted to use Tk7 crore for buildings and other civil constructions, Tk4.09 crore for plant and machinery, Tk10 crore for bank loan repayment, Tk2.85 crore for purchasing diesel generators and Tk4.07 crore for delivery vans.
According to the company's audited financial statement as of June 30, 2019, its net profit was Tk5.41 crore, which was Tk4.58 crore during the same period of the previous year.
Its sales revenue was Tk89.92 crore, which was Tk77.86 crore during the same period of the previous year.
At the same time, its earnings per share was Tk1.97 and net asset value per share was Tk15.06.
Incorporated in November 2010, Krishibid Feed Ltd went into operation on January 1, 2012.