Steel maker BSRM submits IPO prospectus

BSRM Steels Ltd, the country's only manufacture of 500 grade steel rod, has submitted draft prospectus of initial public offering (IPO) to the Securities and Exchange Commission (SEC), according to sources.
The leading steel maker eyes to raise Tk 20 crore from public to fund further expansion of its business.
If approved, BSRM will float 20,00,000 ordinary shares of Tk 100 each to raise the Tk 20 crore, which will be added to its existing paid up capital of Tk 125 crore. The authorised capital of the company is Tk 200 crore.
“We have received the IPO prospectus and we are working on it,” said Farhad Ahmed, executive director of SEC.
The sources, however, said almost all the necessary works have already been done and the proposal may be placed before the upcoming commission meeting of the SEC.
The company, which started production in March at its new Tk 370 crore Chittagong plant, is part of the BSRM Group, the largest rod manufacturer in the country.
The plant currently has an annual production capacity of 3.75 lakh tonnes and is one of the largest mills of its kind in South Asia.
With the existing prices of rod, the company's annual turnover may reach at Tk 1500 crore after one year, when the company expects to go into full phase production.
Now, BSRM holds around 12 percent of the market for rod, a key material in the construction industry.