Top steelmaker to list on bourse

Aameir Alihussain, director of BSRM, says the listing will help the company reduce operational costs as it will offer tax benefits.

BSRM Steels Ltd, the only manufacture of 500 grade steel rod, plans to list on the country's stock exchanges in July in order to raise around Tk 20 crore to fund further expansion of its business.
The company, which started production in March at its new Tk370 crore Chittagong plant, is part of the BSRM Group, the largest quality rod manufacturer in the country.
The plant currently has a annul production capacity of 3.75 lakh tonnes and is one of the largest mills of its kind in South Asia, according to the company.
“We want to invest the amount in our factory to inject more capital in it and to build a better reputation of our group,” said Aameir Alihussain, director of BSRM.
“This venture will also help us reduce operational costs as we will get a corporate tax benefit,” he added.
With the increasing demand of quality MS (mild steel) rod used in high rise construction, BSRM is hoping to increase capacity at its 500-grade rod plant. This grade of rod is useful in structures needing strength with less weight such as bridges.
The amount of current paid up capital of the BSRM Steel Ltd is Tk 145 crore while the amount of authorized capital of the company is Tk 200 crore, said Tapan Podder, financial consultant of the company.
BSRM Steel will float a total of two million shares with face value of Tk 100 per share, the official said.
Share of the company will be floated on both Dhaka and Chittagong bourses of the country.
Recently, Bangladesh Steel Re-Rolling Mills (BSRM) put forward a huge expansion plan to double its market share for quality rod that also includes setting up a billet manufacturing factory at a cost of Tk 600 crore.
“Now we have to import billet but if established we will be able to produce it by our self,” said an official of the company.
Now, BSRM holds around 12 percent of the market for quality rod, a key material in the construction industry. The total turnover of the group is around Tk 815 crore.
BSRM is also the biggest power consumer in the country and paying around Tk 1.8 crore per month in electricity bills.
Currently there are nearly 100 steel mills and 250 re-rolling mills in the country while the total output capacity is 2.4 million tonnes per year. Consumption of quality steel products in Bangladesh is at 1.5 million-1.6 million tonnes, sector insiders said.
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