Marico IPO subscription starts today
The IPO subscription of Marico Bangladesh, a leader in fast-moving consumer goods, stars today.
A subsidiary of Mumbai-based group Marico, Marico Bangladesh received approval from the Securities and Exchange Commission for an initial public offering in early July. It will raise more than Tk 13.42 crore in Bangladesh market.
The company will float 14,92,100 ordinary shares of Tk 10 each in addition to Tk 80 in premium per share. The subscription will close on Thursday.
Marico Bangladesh will spend the fund to repay bank loans, said people close to the issue.
Net asset value per share of Marico Bangladesh is Tk 32.69 and annualised earnings per share are Tk 11.12.
Marico Bangladesh is the manufacturer and marketer of flagship brand Parachute coconut oil, Beliphool, Aromatic, Camelia and Hair Code.
Milind Sarwate, director of Marico Bangladesh and chief of HR & strategy of Marico Group, described the IPO as a process of localising the business.
Marico will be the first Indian company to float shares in Bangladesh.
“Bangladesh is a strategic partner in our global business which contributes around 10 percent of our group turnover and has experienced tremendous growth in the last three years,” a statement quoted Sarwate, who was in Bangladesh last week, as saying.
The company achieved a CAGR (compounded annual growth rate) of 44 percent in turnover and 38 percent in net profit over the past three years.
“Bangladesh capital market has immense potential to grow and we wanted to be associated with the growth journey of the market,” Sarwate said.
Established in 1999, the company has set up its factory in Gazipur and has generated direct and indirect employment in Bangladesh.
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