Agro Organica files for a Tk10cr QIO

FY22 Q1 Financials

• Revenue: Tk12.32cr
• Net profit: Tk1.48cr
• EPS: Tk0.39
• Total assets: Tk69cr
• Retained earnings: Tk15.13cr

Agro Organica Limited has recently applied to the Bangladesh Securities and Exchange Commission (BSEC) for a Qualified Investors Offer (QIO) to raise Tk10 crore from the SME board of the stock exchanges.

The company will issue shares at a face value of Tk10 each under the fixed price method.

Agro Organica Limited was incorporated in August 2011 and its commercial operation started in October 2015. The factory is situated at BSCIC Industrial Area, Nowhata, Sherpur.

The principal activities of the company are manufacturing and marketing of agro products in the various categories of rice, saffron, isabgol, spices, ghee, jelly, and pickles which are sold in the local market.

From the QIO fund, the company wants to spend Tk1.69 crore on factory expansion, Tk5.17 crore on plant and machinery acquisition, and Tk3 crore on bank loan repayment.

In the July to September quarter of FY22, Agro Organica's net profit was Tk1.48 crore, which was Tk1.22 crore during the same period of the previous year.

Its sales revenue was Tk12.32 crore, which was Tk10.70 crore during the same period a year ago.

At the same time, its earnings per share were Tk0.39 and net asset value per share was Tk13.95.

The company's authorised capital is Tk100 crore, and paid-up Tk38.30 crore. Sponsors and directors jointly hold 41.18% shares and other shareholders hold the rest.

Seeking anonymity, a top official of Agro Organica said the firm has modern machinery and technology that ensures quality products.

"Quality is the main concern while formulating our strategy. We try to produce goods at a cheap cost so that we can get a competitive advantage over our competitors."

"We already started retail sales although most of the revenue is generated from corporate sales in super shops in the divisional markets," he added.