Krishibid Feed to raise Tk22cr from capital markets
The feed maker will use the funds to construct factory buildings, buy a plant, and repay bank loans
Aiming to create a long-term financing source for the SME sector, the Bangladesh Securities and Exchange Commission (BSEC) on Sunday allowed Krishibid Feed Limited to raise Tk22 crore in capital with a qualified investor offer (QIO).
The feed maker will issue 2.20 crore general shares at Tk10 each. The company will be listed on the SME platforms of local stock exchanges and only eligible investors can buy these shares.
The company is primarily engaged in manufacturing, sales, and distribution of all sorts of feed for poultry, fish, and cattle.
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Krishibid Feed will use the QIO proceeds to construct factory buildings, buy a plant and machinery, repay bank loans, and buy diesel generators and delivery vans.
According to the company's financial statements, its earnings per share (EPS) was Tk1.67 till 31 December 2020. The net asset value without revaluation reserve was Tk18.47.
The company cannot issue bonus shares for three years after it is listed on the SME platform, BSEC says in a press release.
Those who have invested Tk1 crore or more in listed securities at market price will be considered as qualified investors, including resident and non-resident Bangladeshis.
The issue manager of the company is MTB Capital Limited.
The commission previously allowed Nialco Alloys, Master Feed Agrotec, Subra Systems Ltd, Oryza Agro Industries Limited, and Mostafa Metal Industries to be listed on the SME platform.
The three companies from the feed industry, which have been listed on the capital market, are Aman Feed Mills, National Feed Mills, and Index-Agro.
Krishibid Feed has dozens of competitors in the feed industry such as Quality Feed, Paragon Feed, Nourish Poultry and Hatchery, Provita, New Hope Feed Mill (bd), Kazi Feed, ACI-Godrej Agrovet (Pvt), and Aftab Feed.
