Index Agro’s cut-off price set at Tk 62

The cut-off price of shares in Index Agro Industries has been set at Tk 62 each after bidding by eligible institutional investors.

As per the book building method, eligible institutional investors took part in the price discovery.

At the end of the bidding process, with a proposed rate between Tk 11 and Tk 100, the cut-off price was set at Tk 62, according to the Dhaka Stock Exchange.

According to the securities regulator’s book-building rules, shares sold to general investors must be at a 10 per cent discount on the cut-off price.

The agro-based company will use the Tk 50 crore from the initial public offering (IPO) fund to install new machinery at its plant and repay some of its bank loans.

Also Read: Index Agro share bidding begins November 1

According to the entity’s audited financial statements for the year ending on June 30, 2019, the company’s weighted net asset value per share was Tk 45 while earnings per share was Tk 7.1.

Incorporated in 2000, Index Agro Industries commenced operations with a poultry hatching and breeder facility to cater to the growing demand for quality pullets for the promising local poultry industry.

The company produces poultry and fish feed and day-old chicks.

AFC Capital and EBL Investment will act as the issue manager.