Star Adhesives to debut share trading on Wednesday
The share trading of Star Adhesives Limited – a concern of Partex Star Group – will commence on Wednesday on the SME Platform of the Dhaka Stock Exchange (DSE).
Back in April 2019, the small-cap DSE-SME board was rolled out so that small and medium enterprises (SMEs), having a paid-up capital between Tk5 crore and Tk30 crore, could avail of financing from the stock market.
Currently, 10 companies are listed on the board.
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On 15 February this year, the Bangladesh Securities and Exchange Commission (BSEC) allowed Star Adhesives to raise Tk5 crore through a qualified investor offer (QIO) from the SME board.
The company issued 50 lakh ordinary shares at a face value of Tk10 each.
Out of the amount, it wants to spend Tk1.51 crore on factory renovation, Tk1.80 crore on working capital, and Tk1.60 crore on repaying bank loans.
According to the company's audited financial statement as of 30 June 2021, its net profit stood at Tk2.69 crore, which was Tk0.88 crore in the previous year.
Its revenue stood at Tk41.24 crore, which was Tk25.33 crore a year ago.
At the same time, its basic earnings per share stood at Tk6.05 and its net asset value per share at Tk12.56.
The company will not be able to issue bonus shares in the next three years following its debut on the DSE SME platform.
Company info
Star Adhesives was incorporated in Bangladesh on 1 January 2013, with AAA Finance and Investment Ltd as its issue manager.
The firm manufactures different types of adhesives, lubricants, lacquer, spray paint, and silicon, as well as brake oil and grease.
According to the company prospectus, adhesives are used as a backward linkage material for board, door, leather, footwear, plastic, household, and paint industries in the country.
The average growth of the adhesive industry in Bangladesh is 30%.
The most common manufacturing items in adhesives are rubber adhesives, resin, PUR, distemper, solvent cement, hot melt glue, super glue, silicone, wood preservative, NC thinner, and spray paint.
Star Adhesives, Pidilite Industries, RFL, Berger Paints, Fast Group, and Bengal Group are the major players in this sector.
