DSE moves to list state-owned Ashuganj Power Station on capital market

Infographic: TBS

The Dhaka Stock Exchange (DSE), the country's premier bourse, is working to bring Ashuganj Power Station Company — one of the nation's largest state-owned power producers — to the stock market, in line with the government's push for listing profitable state-owned enterprises (SOEs).

The DSE wrote to the government and relevant authorities, including the Power Division, urging them to take necessary initiatives for the listing.

On Thursday, the DSE, including its chairman, met with high officials of Ashuganj Power Station, which raised Tk100 crore through bond issuance in 2019 to finance its new power plant with 400MW combined cycle (East) power plant.

According to DSE officials, this is the first step toward bringing SOEs to the capital market following the directive from Chief Adviser Professor Muhammad Yunus, issued during a meeting with top capital market officials in May this year.

The interim government has decided to bring profitable SOEs and multinational companies (MNCs) with government stakes to the stock market.

Raising capital through an initial public offering (IPO) is usually a time-consuming process, often taking one to two years from filing to trading, as seen in peer countries. 

However, the DSE aims to bring Ashuganj Power Station to the market in a shorter timeframe, as much of its financial documentation was already prepared during its earlier bond issuance.

DSE Chairman Mominul Islam told TBS, "Ashuganj Power Station previously raised funds by issuing bonds in the capital market. In a meeting, the company expressed its interest in getting listed. The listing proposal will hopefully be placed at its upcoming board meeting."

He said that the power producer has a strong financial base and generates a substantial amount of profit every year, producing electricity. The DSE is ready to extend full cooperation and technical support throughout the listing process to ensure a smooth and efficient transition.

Ashuganj Power Station is engaged in the generation, supply, and sale of electricity through the national grid to the Bangladesh Power Development Board (BPDB).

An official at Ashuganj Power Station, seeking anonymity, told TBS, "We are a government-owned firm. If the government wants us to be listed on the stock market, we are bound to follow that directive in support of both national interest and capital market development."

"The company has plans to expand its generation capacity, which will require a substantial amount of funds in the near future. Previously, most of the funding came from foreign lenders. If we can raise funds from the capital market, it will be very helpful," he added.

Ashuganj Power Station Company's paid-up capital stands at Tk1,372.60 crore, divided into 137.26 crore shares. The Bangladesh Power Development Board (BPDB) holds 124.92 crore shares (91.01%), while the Power Division owns 12.31 crore shares (8.98%).

Commissioned in 1966 as the country's largest power plant at the time, Ashuganj Power Station (APS) began operations with two units totalling 128 MW, which became operational by July 1970. Following independence, the plant played a key role in national reconstruction and development.

Three additional units of 150 MW each were added in 1986 and 1987. A combined cycle plant, with two 56MW gas turbines and one 34MW steam turbine, was installed in phases between 1982 and 1986.

With continued expansion, APS now has a total installed capacity of 1,690 MW. In FY 2023–24, it supplied 7,571.08 million kWh of electricity to the national grid—up 9.39% from the previous year.

Profit doubles to Tk489cr in FY24

According to its annual report, Ashuganj Power Station hit a record profit with Tk489 crore with basic earnings per share (EPS) of Tk3.57 in the 2023-24 fiscal year, which is almost double compared to the 2022-23 fiscal year. While its revenue from selling electricity grew 33.33% to Tk4,473 crore.

In FY23, its revenue was Tk3,380 crore and net profit Tk244.58 crore with basic EPS of Tk1.78. The profit growth trajectory has continued in the first half of the 2024-25 fiscal year, ending on 30 December.

In the first half of FY25, it reported a growth of 20% in net profit to Tk321.74 crore with an EPS of Tk2.34, up from Tk268.65 crore and EPS of Tk1.96 in the same time of the previous fiscal year. 

During the July to December period of FY25, its revenue slightly increased to Tk2265.96cr, which was Tk2226cr at the same time of the previous fiscal year. 

Its quarterly reports showed that its total assets, as at 30 December 2024, were Tk17,253 crore, while its total liabilities were Tk13,529.65 crore. 

Of the total liabilities, its non-current liabilities are Tk7,462.79 crore, mostly foreign loans of Tk4,491 crore, while total current liabilities of Tk6,066.85 crore are mostly trade payable to Tk4,023 crore. 

It has loans of Tk4491 crore from ADB and IDB for its 450MW north and 400MW east power plant. 

As of 30 December, its retained earnings stood at Tk2,185.05 crore. 

50% of Tk100cr bond already repaid

Ashuganj Power Station Company raised Tk100 crore through a public bond offering around six years ago to finance its 400MW (East) power plant, with a tenure of seven years.

According to Company Secretary Mohammad Abul Mansur, the power producer has already repaid Tk50 crore of the bond principal to its investors. The remaining amount will be repaid by January 2027.

He also noted that a major portion of the Tk500 crore raised through private placement has already been repaid, with the remaining due by January 2026.

As per the company's information memorandum, the total projected cost of the power plant is Tk2,310.13 crore. Of this, Tk1,737 crore came from loans provided by the Asian Development Bank (ADB) and Islamic Development Bank (IDB), while the remainder was financed through government loans and bond issuance.