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Appollo Ispat's new plant starts operation April 1

FE Report | March 28, 2018 00:00:00

The commercial operation of Appollo Ispat Complex's IPO-funded project will start from April 1, according to an official disclosure Tuesday.

It was stated to be a green and environment-friendly (no use of acid & lead) most advanced radiant tube furnace (RTF) technology-based NOF-CGL plant, having 72,000 tonnes of annual capacity.

The estimated revenue of the project will increase by Tk 5,400 million per annum with the utilisation of 80 per cent production capacity, according to the disclosure.

It said cost of the project will be Tk 2,038.69 million and its useful life will be 15-20 years.

Machine supplier is ESMECH Equipment (Pvt.) Ltd. technology from SMS Germany & ESMECH India joint venture, it added.

In 2013, the corrugated and galvanized sheet manufacturing company raised Tk 2.20 billion through issuing 100 million ordinary shares of Tk 22 each, including a premium of Tk 12 per share.

According to the IPO prospectus, Appollo Ispat used around Tk 1.53 billion from the IPO proceeds to repay bank loans, Tk 600 million for project development and the rest to bear the IPO expenses.

The company's share price closed at Tk 14 each on Tuesday at the Dhaka Stock Exchange, losing 1.41 per cent over the previous session.

The company's earnings per share stood at Tk 0.03 for October-December quarter of 2017 as against Tk 0.69 for the corresponding period of 2016.

In six months from July to December of 2017, the EPS was Tk 0.10 against Tk 1.36 for the same period a year ago.

The company, which was listed on the Dhaka bourse in 2013, disbursed 10 per cent stock dividend for the year ended on June 30, 2017.

The company's paid-up capital is Tk 3.89 billion and authorised capital is Tk 5.0 billion while the total number of securities is 389.62 million.

The sponsor-directors own 21.19 per cent stake in the company while the institutional investors 22.56 per cent, foreign investors 0.83 per cent and the general public 55.42 per cent as on February 28, 2018, the DSE data shows.

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