After acquisition, LR Global eyes revival of Padma Printers

Infographic: TBS

Padma Printers & Colour Ltd, established in 1968, has been acquired by LR Global Bangladesh, an asset management company, with investment of Tk23 crore.

The new owner, LR Global, changed Padma Printers' name to Quest BDC Limited last year and announced plans to transform it into an information and technology sector's firm, after injecting a Tk50-crore fund.

LR Global acquired a 51% stake from its old sponsor-directors at a cost of Tk289.48 each, according to its annual report for fiscal year 2022-23.

Quest BDC is now in the process to be listed on the stock exchanges.

In addition to its former printing and packaging business, Quest BDC will focus on business process outsourcing, software development, financials services and other business.

Reaz Islam, chief investment officer of LR Global and director of Quest BDC, told The Business Standard, "Acquiring the majority stake, we took control of the board. The cost price per share was Tk289.48 each."

He further said, "But the average cost per shares may price at Tk20-22 each because of the issuance of new shares against investment of Tk50 crore at Tk10 each."

Padma Printers & Colour Ltd, one of the old firms equipped with modern technology, got listed on the Dhaka Stock Exchange (DSE) in 1979.

Owing to a downfall in its business and over non-compliance with the securities laws, Padma Printers was transferred to the over-the-counter platform in 2009.

In September 2021, the Bangladesh Securities and Exchange Commission (BSEC) had suspended the OTC board returning companies to a SME board, an alternative trading board, and some from the stock market.

Along with the 28 companies of OTC, Padma Printers had to exit from the stock market.

LR Global had shown interest to acquire it in the middle of 2023, the BSEC allowed the asset management company to acquire sponsor-directors' stake.

Shares purchase deal with LR Global

According to a report of Quest BDC, to execute the acquisition deal, LR Global wrote to the BSEC in September 2023 to transfer 8.16 lakh shares, bought from the previous owner of Padma Printers to LR Global's six mutual funds.

The six mutual funds are DBH First Mutual Fund, Green Delta Mutual Fund, AIBL 1st Islamic MF, MBL 1st Mutual Fund, LR Global Bangladesh Mutual Fund One and NCCBL Mutual Fund.

Out of acquired shares, 3,30,043 shares were transferred to the funds, and the rest will be transferred later, according to its auditor note.

Earlier in May 2022, LR Global had acquired an 8.96% stake at Agni Systems Limited — a publicly-listed internet services provider.

Also, in 2019, LR Global initiated to invest a significant amount of taka in news portal Bdnews24.com.

What is the new plan?

Before transferring to the new owner and changing name to Quest BDC, the nature of business was printing, packaging, colouring varieties of books, periodicals, and paper items.

Now, the new owner has decided to focus on information technology based products.

Reaz Islam said, "Quest BDC will run its business emphasising on information technology based products as the industry grows rapidly, and has huge potential in the future."

He further said initially, the business will continue on a small scale, but main focus will be in business process outsourcing, outsourcing and software development.

"We will invest funds in some strategic companies, which have some potential like in the healthcare, financial services, agriculture, IT and education sectors," Reaz Islam said.

Rezaur Rahman Sohag, chairman of Quest BDC, who was nominated by Green Delta Mutual Fund, told TBS, "With a plan of reviving it, we acquired the company, and already, it resumed the business."

He said, "We planned big, and hope to be successful."

According to its reports, Quest BDC has Tk112 crore assets as of 30 June 2023, of which, non-current assets stands at Tk74 crore.

In FY23, the company earned Tk16 lakh revenue, and profit Tk37 lakh. Due to an increase in non-operating income, its net profit increased.