New IPO Notes

IPO Note on Bangladesh Steel Re-Rolling Mills Limited

Company Overview

Bangladesh Steel Re-RollingMills Limited (BSRMLTD), a high grade steel manufacturing company, has beenoperating as the flagship company of BSRM Group of Companies, the mostsuccessful and highly regarded group in the sector of the country. Theprincipal activities of the company include manufacturing Mild Steel productsi.e. Rod, Angle, Channel, I Beam, H Beam, Ingot etc.

Key Facts

·        The Companycurrently has production capacity of 120,000 MT of MS products. In CY13,capacity utilization was 89.01%.

·        The company is inthe process to enhance its capacity from 120,000 MT to 450,000 MT per annumthrough a BMRE to cater the growing de-mand of quality steel in the country.Commercial Operation of the BMRE is expected on April 2015.

·        BSRMLTD has issueddebt securities amounting BDT 1500 mn of which BDT 152.4 mn will be convertedinto ordinary shares within May 2015. The company will have to issue 4.01 mnordinary shares for debt con-version. There will be lock in period of 1 yearson these shares. Spon-sors of BSRMLTD has given buy back guarantee to theinvestor of debt securities at BDT 57 per share after completion of lock inperiod.

·        BSRM Steels Ltd.,another producer of MS Rod in Bangladesh, is an associate of BSRMLTD. BSRMLTDholds 31.19% ownership of the firm.

·        BSRMLTD hasanother associate (21.76% ownership) named BSRM Steel Mills Ltd. This companyis currently building production facility for manufacturing 862,000 MT of MSBillets per annum. The company is expected to go into commercial productionwithin September, 2015. 

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