• Financial

The bidding for Baraka Patenga will start on Monday

  • Financial
  • 21 February, 2021 14:49:26

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News Desk: The auction (bidding) of Baraka Patenga Power Limited, which has been approved to raise money from the capital market through an initial public offering (IPO) through book building method, will start tomorrow (February 22) at 5 pm and will continue till 5 pm on February 25. Earlier, the bidding date was fixed for February 15-16. This new date has been fixed by changing the bidding date later.

Baraka Patenga Power was approved for bidding at the 655th Commission Meeting of the Bangladesh Securities and Exchange Commission (BSEC). By raising Tk 225 crore from the capital market through IPO, they will invest in subsidiary companies Karnafuli Power and Baraka Shikalbaha Power, as well as partial long-term debt repayment and IPO process costs.

According to the (1) (2) Act of C (1) of the Public, Issue Rules 2015, the minimum investment date at the market price of the eligible investors has been fixed at 11 February. However, on February 8 and 11, all the companies with the lowest investment will be able to participate in the bidding for Baraka Patenga, the regulator BSEC said.

According to the financial statements for the year ended June 30, 2020, the company's net asset value (NAV) per share, excluding revaluation, is Tk. At the same time, the company's combined earnings per share (EPS) stood at Tk 4.38, single Tk 1.84. Baraka Patenga Power is a subsidiary of Baraka Power Limited, a listed company. Baraka Power started its journey in 2006 by setting up a 51 MW power plant at Fenchuganj in Sylhet.

Then in 2014, the company got permission from the Bangladesh Power Development Board (BPDB) to set up a 50 MW furnace oil-based power plant in Chittagong. Following the business success of these two power plants, Baraka Patenga Power formed two subsidiary companies. One is Karnafuli Power Limited and the other is Baraka Shikalbaha Power Limited.

Baraka Patenga Power owns a 51 percent stake in the two subsidiaries. The World Bank has invested in Baraka Power as the first private sector power plant. The World Bank has invested 219.75 million in the company through Bangladesh Bank's IPPF project cell.

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