Index Agro gets IPO nod

Index Agro Industries Limited — a subsidiary of Index Group of Companies — has received market regulator BSEC’s go-ahead to float an initial public offer (IPO) using book-building method.

The company IPO will put up more than 82.53 lakh shares worth Tk 50 crore for sale. The cut-off price of shares of the company is Tk 62 each fixed after bidding by eligible institutional investors.

The company will invest the IPO fund in building construction, purchasing equipment, and meet IPO expenses, said the BSEC in a statement on Wednesday.

According to the book building rules, shares will be sold to general investors at Tk 50 per share, a 20 percent discount from the cut-off price.

Institutional investors will be offered 50 percent shares at the cut-off price and the remaining 50 percent to other investors, including general investors and non-resident Bangladeshis.

The company's consolidated earnings per share were Tk 45.03, including revaluation reserve. Its net asset value per share was Tk 44.06, excluding revaluation reserve, according to the audited financial statement as of June 30, 2019.

Beginning operations in 2000, the company produces poultry feed, fish-feed, and day-old chicks.