Trading of the shares of Krishibid Seed --- a concern of Krishibid Group --- will commence today (Tuesday) on the SME Platform of Dhaka Stock Exchange and Chittagong Stock Exchange.
The company's profit after tax jumped 88.35 per cent to Tk 8.57 million for July-September, 2021 quarter, as against profit after tax of Tk 4.55 million for the same quarter a year ago, as per audited first quarter (Q1) financial statements.
Its basic earnings per share (EPS) stood at Tk 0.60 for the July- September 2021 as against basic EPS of Tk 0.46 for the same period of the previous year, the company said in a filing with the DSE on Monday.
However, post-QIO basic EPS for July- September 2021 would be Tk 0.29. The post-QIO net asset value (NAV) per share would be Tk 11.57.
Krishibid Seed is the 11th listed company in the SME Platform of the stock exchanges. Only qualified investors (QI) are allowed to trade in the SME Platforms.
The Bangladesh Securities and Exchange Commission (BSEC) on January 31 approved the company's proposal for raising capital through qualified investors offer (QIO).
As per the regulatory approval, Krishibid Seed raised Tk 116 million by issuing 11.6 million ordinary shares of Tk 10 each under the fixed price method through QIO.
The subscription for shares of the company through electronic subscription system (ESS) under the fixed-price method was held between March 20 and March 24.
The company's QIO was oversubscribed by 2.54 times as it received applications worth Tk 294.35 million from those 72 QIs against the size of QIO worth Tk 116 million, according to DSE information.
It is the first SME firm whose shares subscription was held after the securities regulator slashed drastically the minimum investment limit to Tk 2.0 million for an investor to be qualified for the SME Platforms. Earlier, the threshold was Tk 10 million.
The move is to attract more investors on the platform where the number of SME scrips is now on the rise.
The company will utilise the proceeds for the purpose of building a cold storage depot, storage building, and seed research along with catering to the expense of issue management.
The company will not be allowed to issue bonus shares in three years from the date of debut trading on exchanges SME platform, according to BSEC approval.
SBL Capital is working as issue manager of the Krishibid Seed.
Incorporated in 2016, the principal activity of the company is to produce and import different kinds of quality seeds, like vegetables, maize, rice, wheat, oil, pulse, grass and potato.
Krishibid Feed, another concern of the Krishibid Group, had earlier got listed on the SME board of the premier bourse in early November 2021 by raising Tk 220 million from the stock market.
Each share of the Krishibid Feed closed at Tk 18.20 on Monday, losing 6.19 per cent over the previous day.
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