RSRM zooms up 93.25pc on debut day

Ratanpur Steel Re-rolling Mills (RSRM), a sister concern of Ratanpur Group, posted modest gain in its trading debut Monday at the bourses - Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

Ratanpur Steel Re-rolling Mills, the steel manufactures, share rose by 93.25 per cent or Tk 37.1 per share from its offer price of Tk 40 in the DSE.

Each share of the company traded between Tk 80 and Tk 67.1 on the prime bourse before closing at Tk 77.3. A total of 9.92 million shares changed hands in DSE.

In the port city bourse - CSE, each share of the company traded between Tk 79 and 65 and closed at Tk 76, gaining 90 per cent from its issue price of Tk 40. A total of 2.25 million shares changed hands in CSE.

It was also the most traded stock at the DSE and CSE with shares worth Tk 754.13 million and Tk 169.22 million changing hands respectively.

Debutant Ratanpur Steel Re-rolling Mills posted modest gain as the company came to with a high premium, said an analyst.

The company, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) in May, floated 25 million ordinary shares at an offer price of Tk 40, including a premium of Tk 30 for each ten taka share and raised a fund worth Tk 1.0 billion.

The fund raised through public offering to boost the capital base, repay bank loans and bear the expenses of IPO proceedings, according to the company's IPO prospectus.

The company reported net profit Tk 123.85 million in nine months (July 2013 to March 2014) and basic EPS was Tk 4.18 as against Tk 153.69 million and basic EPS of Tk 5.19 for the same period of the previous year.

However, post IPO basic EPS would be Tk 2.27 for nine months ended on 31 March 2014 and NAV per share would be Tk 49.69 as on 31 March 2014.

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