The board of directors of Shepherd Industries Limited, which raised Tk 200 million through initial public offering (IPO), has decided to revise the un-utilised funds of IPO proceeds.
The board has proposed that the un-utilised funds of IPO proceeds will be used in the following manner, building: Tk 45,360,000 and machineries & installation: Tk 70,467,053 in total Tk 115,827,053 subject to approval of the regulatory approval and shareholders in general meeting.
Previously total unutilised fund was Tk 114,576,375 (building: Tk. 28,140,524, ETP: Tk 15,424,550, machineries & installation: Tk 61,910,807 & IPO expenses: Tk 9,100,494.
Excess amount of Tk (115,827,053-114,576,375) will be financed from the own source of the company, said a statement posted on the Dhaka Stock Exchange (DSE) website on Tuesday.
Reasons for head wise deviations: Building: The board of directors decided to build a 30,000 sft compliance factory for washing plant.
Machineries: most of the payments for machineries shown on prospectus were made from own source of the company.
Un-used IPO fund will be used for new machineries. ETP: Cost of ETP will be financed from the own source of the company. IPO expenses: It was paid from the own source of the company.
Shepherd Industries which made its share trading debut in March this year, floated 20 million ordinary shares at an offer price of Tk 10 each and raised a fund worth Tk 200 million from the public using the fixed price method.
Each share of the company closed at Tk 32.40 on Monday at the DSE.
Located at Bhaluka in Mymensingh, Shepherd Industries is a 100 per cent Taiwan invested sweater yarn manufacturer established in 2000.
The company supplies a wide range of sweater yarns and provides garment dyeing and washing services to export-oriented sweater factories in Bangladesh.