Shahjibazar Power makes a dismal debut

Shahjibazar Power Co failed to attract investors on its trading debut on the stock market, in spite of the 25 percent year-on-year rise in its nine-month earnings.
The rental power generation firm's shares rose 46 percent, whereas FAR Chemicals, which debuted last week, saw its shares skyrocket 500 percent on its opening trading day.
Each share of the company yesterday traded between Tk 39 and Tk 35 on the Dhaka Stock Exchange before closing at Tk 36.5. A total of 56.68 lakh shares changed hands, generating a turnover of Tk 20.73 crore.
“Debutant Shahjibazar Power could not attract investors much,” said IDLC Investments, a merchant bank.
The power generation company, which received regulatory approval from the Bangladesh Securities and Exchange Commission in January, floated 1.26 crore ordinary shares of Tk 10 each at an offer price of Tk 25, including Tk 15 as premium.
Located in Habiganj, Shahjibazar Power produces electricity from natural gas and supplies to Bangladesh Power Development Board. The company started commercial production with its 86MW power plants in February 2009.
Shahjibazar Power's net profit in the nine months to March stood at Tk 28.94 crore in contrast to Tk 22.22 crore it logged in for the same period a year ago.
Income from its two subsidiaries, Petromax Refinery and Midland Power, both of which started production during the period, pushed up its net profits, said Yeasin Ahmed, the company secretary.
Shahjibazar Power owns 99.33 percent shares of Petromax Refinery, an oil refinery company that started manufacturing petroleum and petrochemical products in November last year. It has a 49 percent stake in Midland Power Company, which started generating 51MW power for the BPDB in December last year, he said.
The company has also applied for new plants to the government, Ahmed said, adding that it is also looking to diversify into other areas such as solar power.
Feroz Alam, managing director of Shahjibazar Power, said: “We will try to give a healthy dividend to investors from our income. Shahjibazar Power will give priority to investors' interests.”