Welcome to Our Presentation

Repeat Public Offering

-------PMCL

Legal Finance & Investment

Corporation LTD (LFIC)
Fundamentals of Human
Resource Management,
10/e, DeCenzo/Robbins

Chapter 8, slide 1

Legal Finance & Investment

Corporation Ltd
Sl no.

Name

ID No.

JANNATUL NAIMA (CEO)

18-065

OBYDUL HOQE (CMO)

18-087

BILLAL HOSEN (CFO)

18-155

SHAHANAZ PARVIN (Project

manager)

18-259

SAFWAN CHOWDHURY (SCM)

18-263

Prospectus - PMCL

PMCL
One of the supreme and tech-oriented cement
manufacturers in Bangladesh.
Manufactures European standard Cement using
the best raw materials and technical excellence.
the Company established in 2001 and started its
commercial operation in 2004
cement is certified by Buet, BSTL and ISO
9001:2008 and fully automated manufacturing
facility complies with Bangladeshi BDS EN,
American AStM, European EN and Indian BIS
standards.
aggregate capacity amount of 2.82 Million Mt per
annum.

Why Should You Invest ?

Why Should You Invest ?

Achievements

Associa
te
Compa
ny
Subsidi
ary
Compa
ny

National
Cement Mills
Limited
Premier Power
Generation
Limited.

Product Details
Increase in sales(%)
Currently producing
8000 tons per
28%
day.
21%
Produces15%
12%
Increase in sales (%)
1.
Ordinary
Portland
Cement
9%
2. Composite Portland Cement
Exports 12% products to India,
Year
Myanmar and Thailand.
30%
25%
20%
15%
10%
5%

0%
2011

2012

2013

2014

2015(expected)

Uses of Fund
Sl. No.

Particulars

Amount in
BDT million

1.

Machineries for
3rd Unit

338

2.

Wheel Loader

140

Production Capacity(in million MT)

3.

Barge Loader

430

3.5

Implementati
on Schedule
2.6 6 month
Within
2.4
of getting RPO
proceeds

1.2

0.6

Within 4
months
Within 3
months

4.

E-crane

130

Within 1 month

5.

Others

642

Within 5
2014months
2015 2016(expected)

2010

2012

Years

Financial Health of the Company

RISK FACTORS

MANAGEMENTS PERCEPTION ABOUT THE RISKS

Interest Rate Risk

(volatile
interest rate over the year- enhances the cost
of fund )
Exchange Rate Risk
(most of the raw
materials are
imported from abroadunfavorable
volatility of foreign currency
may affect the profitability )
Industry Risks
(market will
be more competitive due to excess capacity
in the industry- competition on pricing of
products)
Market and Technology Related Risks
(technological obsolescence as capital based
industry)

emphasizes on equity based financing to

reduce dependency on borrowed fundlower impact upon the financial
performance
favorable adjustment of price in case of
adverse exchange rate fluctuations and
international price movements-minimizing
exchange rate risk by boosting export
earnings, which contribute around 5.95%
of total revenue
industry is growing at an average rate of
10%-12% per annum- geographical
advantage as located in Chittagong
expanding production capacity with the
latest technology

RISK FACTORS

MANAGEMENTS PERCEPTION ABOUT THE RISKS

Potential
or
Existing
Government
Regulations
(unfavorable
Income Tax Rules,
VAT Rules,
environmental rules)

unlikely the government will initiate

any fiscal measure having adverse
effect on the growth of the industry

Sourcing of Raw Materials

(raw
materials of cement imported
from
different countries-ability to
source raw
materials specially clinker at competitive
price)

preferential services contract with

shipping co.-bilateral understanding
with independent suppliers

Supply Chain Management

(Many
strong producers including multinationalsefficient supply chain)

distribution fleet-dedicated covered

vans-bulk carriers-lighter vessels

Refund Of Subscription Money

Through banking channel for onward
deposit of the refund money into the
applicants bank
Through issuance of refund warrant

Subscription by and Refund to

Non-Resident Bangladeshi (NRB)
through crossed bank cheque marking
Account Payee only
paid in Taka or US dollar or UK pound sterling
or EURO at the rate of exchange mentioned

Features of RPO
1.Valuation

based on Net Asset Value per share:

Share capital
Revaluation reserve
Tax holiday reserve
Share premium

1,054,500,000
356,868,534
2,274,386
441,835,000

Retained earnings

1,162,879,482

total equity

3,018,357,402

Number of Share outstranding

Net Assets Value(NAV)

106506740
28.34

2.

Weighted average Earnings Based Price

Year
ended
on June
(1)
2012
2013

EPS

2014
Total

No of
share
(2)

Net Profit
After tax
(3)

932200
1.87
50
998335
5
13

174,321,4
94
499,167,5
67

106506
509,102,2
4.78
740 18

Weight
of No of
Shares
(4)
0.311

0.333

0.356

Weighted Average Net Profit After Tax during the period

2012-14
No of shares outstanding as on June 30,2014
EPS based on Weighted Average Net Profit After Tax

54247035.49
166355993.6

181,008,020.61

299560 1,182,591,
279
304

Average DSE
market P/E

earning Based price per

Weighted
Average Net
Profit After Tax5=
4*3

401611049.7
401611049.7
106506740
3.770757128
30

3. Share price based on

projected earnings per share
Year
Projected Net
profit after tax
Projected EPS

2015

2016

2017

625,454,831 749,158,081
.33
.44
5.90

7.06

8.34

Average projected
EPS

7.10

Average market
P/E for June, 2015

33.25

Value per share

based on
projected EPS

Prospectus.xlsx

884,619,418.09

236.08

4. Price based on P/E of

similar companies
average market P/E of similar company
P/E

Price Based on P/E of

similar companies

EPS

HEIDELB
cement
CONFIDCEM

14.08

26.09

14.44

6.24

MEGHNACEM

11.83

9.24

ARAMITCEM

61.84

0.51

LAFSURFCEML

53.25

MICEMENT

18.22

4.49

28.943
33

8.095

Average

average P/E of similar

company

28.94

EPS(Dcember 2014)

8.095

value based on P/E of

Similar stock

234.30

Share Allotment
No. of
Shares

Particulars

A. 20% of RPO of ordinary Shares are reserved for

afected small investors

B. 10% of RPO of Shares shall be reserved for Non

Resident
Bangladeshis (NRB)

C. 10% of RPO of Shares shall be reserved for

Mutual Funds and
Collective Investment schemes registered with the
Commission
D. Remaining 60% of RPO of Shares shall be
opened for subscription by The General
Public.

Total

Amount
(Tk.)

2,400,000

52,800,00
0

1,200,000

26,400,00
0

1,200,000

26,400,00
0

7,200,000

158,400,00
0

12,000,000 264,000,00
0

Plan of distribution
Sl.

Name and address of

underwriters

No.
1

ICB Capital Management

Limited

No. of Share

Amount
(TK.)

Underwritten

3,000,000

420000000

BDBL Bhaban (Level-16),

8 Rajuk
Avenue,

Dhaka-1000
IIDFC Capital Limited

3,000,000

420000000

Eunoos Trade Center

(Level-7), 5253, Dilkusha C/A,

Dhaka-1000
Total

6,000,000

840000000

What Else Do You wana

know ?