Bashundhara inks deal with bourses

Bashundhara Paper Mills Tuesday signed an agreement with both the stock exchanges to conduct price bidding of shares using electronic subscription system software. Bashundhara Paper Mills has already got the regulatory approval to conduct price bidding to go public under book building method. As per the tripartite agreement signed Tuesday, Bashundhara Paper Mills will utilise electronic subscription system software which was jointly developed by the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). The company will also get relevant technical support from the both the stock exchanges. On August 27 last, the securities regulator allowed the Bashundhara Paper Mills to determine cut-off price in a bid to raise fund worth Tk 2.0 billion under book building method. The company's IPO (initial public offering) fund will used to purchase machineries, to repay bank loans and to bear IPO expense. According to financial statement for the year ended on June 30, 2016, the company's net asset value (NAV) per share (EPS) is of Tk 30.49, including revaluation reserve, whereas the value is of Tk 15.79 without revaluation reserve. The company's weighted average of earnings per share (EPS) was Tk 1.46 for the year ended on June 30, 2016. The Bashundhara Paper Mills produces different types of papers such as writing and printing paper, white printing paper, photocopy and sanitary paper, multipurpose paper, colour printing paper, ledger printing paper and bidi paper. Besides, the Bashundhara Paper Mills also produces different types of tissues such as facial tissue, pocket tissue, toilet tissue, kitchen towel tissue and wet tissue. AAA Finance & Investment is working as issue manager for Bashundhara Paper Mills.