FE Report
Bangladesh Steel Re-rolling Mills Ltd (BSRM), a Chittagong-based steel manufacturing conglomerate, was placed in 'A' category from existing 'N' category with effect from today (Thursday), officials said.
"The company will be placed in 'A' category from existing 'N' category as the company has reported disbursement of 10 per cent cash dividend for the year ended on 31 December 2014," said a Dhaka Stock Exchange (DSE) web post on Wednesday.
Bangladesh Steel Re-Rolling Mills made share trading debut on April 27 this year under 'N' category in the 'engineering' sector. The sector accounted for around 5.0 per cent of the total market capitalisation of the DSE.
The steel manufacturer floated 17.5 million ordinary shares at an offer price of Tk 35, including a premium of Tk 25 for each ten taka share and raised a fund worth above Tk 612.5 million from the public. The IPO fund is being used for BSRM's ongoing expansion and loan repayment.
IPO subscription of the company took place between February 1 to February 5 for resident Bangladeshi and continued till February 14 for non-resident Bangladeshi (NRB). IPO subscription of the company was oversubscribed by 20 times.
Each share prices of the company closed at Tk 84.6 on Wednesday, registering a decline of 0.83 per cent over the previous day's price despite of its category change news.
Of the total company shares - sponsor/directors own 57.11 per cent, intuitions 3.25 per cent, foreign investors 30.55 per cent while public own 9.09 per cent, according to DSE website.
The securities regulator - Bangladesh Securities & Exchange Commission (BSEC) approved the IPO proposal of Bangladesh Steel Re-Rolling Mills on December 9, last year.
The company has reported net profit after tax from Jan'15-June'15 Tk 185.19 million with EPS of Tk 1.08 as against Tk 31.87 million and Tk 0.20 respectively for the same period of the previous year.
The BSRM started its journey in 1952.
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