Appollo Ispat’s IPO project to start commercial operation April 1
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The commercial operation of Appollo Ispat’s environment-friendly IPO project will start from April 1, according to an official disclosure on Tuesday.
The company has informed that the most advanced radiant tube furnace (RTF) technology based NOF-CGL plant having 72,000 MT capacities (per annum) will start its commercial operation from April 01, 2018.
“The project is green project/environment friendly (no use of acid & lead). Products use for the project is RTF-SUPER galvanising/CI Sheet,” it said.
The estimated revenue of the project will increase by Tk 5,400 million per annum with the utilisation of 80 per cent production capacity, said the disclosure.
Cost of the project will be Tk 2,038.69 million and its useful lives will be 15-20 years, it said.
Machine supplier is ESMECH Equipment (Pvt.) Ltd. technology from SMS Germany & ESMECH India Joint Venture, the disclosure added.
In 2013, the corrugated and galvanised sheet manufacturing company raised Tk 2.20 billion through issuing 100 million ordinary shares of Tk 22 each, including Tk 12 as premium per share.
According to the IPO prospectus, Appollo Ispat used around Tk 1.53 billion from the IPO proceeds to repay bank loans, Tk 600 million for project development and the rest to bear the IPO expenses.
The company’s share price closed at Tk 14.20 on Sunday at the Dhaka Stock Exchange (DSE).