Marico Bangladesh Ltd (MBL), the Bangladesh subsidiary of FMCG major Marico will raise Taka 135 million (about Rs 9.5 crore) by doing an IPO in Bangladesh. The company has received an approval from the Bangladesh Securities and Exchange Commission (SEC) for its proposal to make an initial public offering (IPO) in the country, Marico said in a filling to the Bombay Stock Exchange (BSE).
The IPO, which has been scheduled to be opened in August 2009, will be done at a price of Taka 90 per share of the face value of Taka 10. MBL will issue 1,492,100 ordinary shares, which is about 5% of MBL’s equity, to raise take 135 million. The company will list its shares in the Dhaka Stock Exchange and the Chittagong Stock Exchange.
MBL will use the raised funds to strengthen its financial position and to enable the company’s growth. MBL will be the first overseas subsidiary of Marico to go public. “Bangladesh has been an important part of Marico’s global strategy. Over the past 9 years we have consistently invested in Bangladesh. IPO is a further step in localising the Marico business in Bangladesh, through local ownership,” said Vijay Subramaniam, CEO – International Business, Marico.
Marico Bangladesh, too, operates in consumer products space. It market three brands in the country, Parachute, Aromatic and Camelia in the country. Parachute (the coconut oil brand), which is the company’s flagship brand, has a 74% market share in the Bangladesh.
Marico Bangladesh reported a turnover of Taka 3165 million ($45 million) and a net profit of Taka 357 million ($5 million) for the year ended March 31, 2009. MBL’s parent, Marico generated a turnover of Rs 24 billion ($475 million) in 2008-2009. Marico markets brands like Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Medicare, Revive, Manjal , Kaya, Hair Code, Caivil and others in India.