Index Agro’s profit falls, stock debut today
Index Agro Industries gave the bad news of a fall in profits yesterday ahead of its trade debut on the stock exchanges.
The agro-based product manufacturer's half-yearly profit figure hit Tk 13 crore in 2020-21, which was Tk 14 crore last year.
Its earnings per share dropped 7 per cent year-on-year to Tk 3.36 in the six months to December 2020, according to the data published by the Dhaka Stock Exchange.
Index Agro, which has raised a fund of Tk 50 crore under the book-building method, will make its trade debut today.
When a company carries a good track record and seeks a high price over its face value, then it adopts the book-building method to find a cut-off price, which is determined by bidding among eligible investors. The cut-off price of the shares of Index Agro was fixed at Tk 62 each.
As per the book-building method, general investors and non-resident Bangladeshis get shares of initial public offering at a 10 per cent discount on the cut-off price.
But, they got the shares at Tk 50 each, as the company gave a 20 per cent discount on the cut-off price. Index Agro will utilise the IPO proceeds to acquire machinery and equipment, construct building, do civil works and meet the IPO expenses.
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