Bashundhara Paper Industry

The Bangladesh Securities Exchange Commission (BSEC) approved IPO Bashundhara Paper
Mills Ltd. on Tuesday, 30 January 2018 at their 626 nos Board Meeting. Presided over by BSEC
Chairman Prof. Dr. M Khairul Hossain to raise Tk. 200 crore by offloading 2.60 crore shares at a
price of Tk. 72 to Tk. 80 each share. Meanwhile, the commission on August 26 last year allowed
Bashundhara Paper to conduct eligible institutional investors bidding under the book building
method of public issue rules.

The commission, under new public issue rules, decided to offer BPML’s IPO shares to general
and non-resident Bangladeshi investors at 10 percent discount of cut-off price which was set by
the bidding of the institutional investors.

As per the bidding of EIIs, the cut-off price of the company’s shares stands at Tk 80 which will
be allotted to general investors along with NRB investors at Tk 72 each. Under the amended
public issue rules, of the 2.6 crore IPO shares of BPML, 1.56 crore will be allocated to EIIs, 1.04
crore shares will be offered to the General and NRB investors.

Introduction

Name: Bashundhara Paper Mills Ltd. (BMPL)

Incorporation: The company was incorporated in 1993 as a private limited Company and was
subsequently converted into a public limited company on 30 January 1994.

Commercial Operation: BMPL was started commercial operation on 1 March 1997.

Authorized Capital: Tk. 5,000,000,000 divided into 500,000,000 ordinary shares of Tk. 10.00
each

Paid Up Capital (Before IPO): Tk. 1,477,497,750 divided into 147,749,775 ordinary shares of
Tk. 10.00 each
Paid Up Capital (After IPO): Tk. 1,737,914,420 divided into 173,791,442 ordinary shares of Tk.
10.00 each

Management Body: 1) Mr. Ahmed Akbar Sobhan, Chairman

2) Mr. Safwan Sobhan, Managing Director
3) Md. Nazmul Alam Bhuiyan,
Nominated by: East West Property Development (Pvt.) Ltd. & Director
4) Mr. Md. Imrul Hassan, Director
5) Mr. Zeaur Rahman, Independent Director
6) Mr. Khawaja Ahmedur Rahman, Independent Director

History

Generally, all writing and printing are done on paper. Paper is also widely used as wrapping and
packaging material as well. The significance of paper and paper products in modern life is
obvious to everyone now a day.

In Bangladesh, the paper industry went into operation during the late 1950s when the Karnaphuli
Paper Mill (KPM) at Chandragona in Chittagong was established. Following that, Bangladesh’s
private sector paper mills started in the early 1980s in Narayanganj as well. Gradually the private
sector has taken over the paper sector in the country and is now producing 90-95% paper
products used in Bangladesh.
However, at present, around 80 paper mills are operating throughout the country. They produce
different grades of paper e.g., writing, printing, packaging, liner, media, simplex, duplex, board,
newsprint, cigarette, etc. The major players of the industry are listed below – Local private mills
account for a market share of around Tk. 400 core/ month; i.e. 60000 MT/Month which tends to
around 5000 crores per year.

Bashundhara Paper Mills Ltd possess around 30% market share at this moment. Besides, around
40000 MT paper products are also imported in each month. Considering above circumstances we
might conclude that the market size of paper products is around 8000 crores/year.

About the business

Bashundhara Group has same nature namely “Bashundhara Newsprint & Duplex Board
Industries Limited (Former Shahjalal News Print Industries Ltd.) and “Bashundhara Tissue
Industries Limited” (Former Freyschmidi Tissue Limited) amalgamated with BPML on October
10, 2009. After the amalgamation of all three companies carrying out its business as a single
legal entity and operated three separate units as “Unit 1”, “Unit-2” and “Unit -3” for
administrative purpose only. Presently the Authorized Capital of the Company is BDT 5000
Million and Paid-Up Capital stands at BDT 1477.49 Million.

Unit-1:
Unit 1 produces very good Quality & International standard MG Paper, Offset Paper, White
Writing & Printing Paper, Brown Wrapper, Brown Liner, Newsprint paper, Coated/Uncoated
paperboard, A4 paper, Glassine Paper, Stiffener, Ledger Paper, PP Woven Bag, Sack Paper also
time to time produce Plug wrap, Cigarette Tipping Paper on request of different Cigarette
manufacturing companies.

Unit-2:
Unit-2 of Bashundhara Paper Mills Limited was set up in 1994 & operates three modern plants in
producing newsprint, white writing/printing paper, duplex board, liner paper, Kraft paper, Art
card, art paper and allied products. The first unit produces duplex boards and other industrial
packing papers used in packaging industry. An offline coater produces coated duplex board &
Art card in this unit. It was formerly known as Bashundhara Newsprint & Duplex Board
Limited.

Unit-3:
Unit–3 of Bashundhara Paper Mills Limited, formerly known as Bashundhara Tissue Industries
Limited, was set up in 1995. It is the country’s first basic tissue manufacturing factory in the face
of growing popularity of tissue with fast-changing urban lifestyle and elevation of living
standards as a whole. The company is manufacturing a wide range of products including facial
tissue, pocket tissue, wet tissue, green tissue, sanitary napkin, baby diaper, toilet tissue, kitchen
towel, cigarette paper, glassine paper, and hard tissue, hand gloves and paper carton container.
 Address

Registered Office:
Plot # 125/A, Road #2, Block # A, Bashundhara R/A, Dhaka-1229
Phone: + 88-02-8432008-17 (Hunting)
Fax: +88-02-55037257

Corporate Head Office:

Bashundhara Paper Mills Ltd.
Plot #03 (Umme Kulsum Road), Block #G, Bashundhara R/A, Dhaka-1229
Tel: +88-02-8401024-8,
Fax: +88-02-8401401
Other Office:

Bashundhara Paper Mills Ltd.

Plot # 56/A, Umme Kulum, Road-2ne Avenue, Block # C, Bashundhara R/A, Dhaka-1229
Tel : +88-02-8431256-8,
Fax : +88-02-55037257

Factory Office:
Unit 1: Meghnaghat, Baranagar, P/O: Newtown, Sonargaon, Narayangonj;
Tel. 01199-850865, Fax: 840-2-9343415
Unit 2: Meghnaghat, P/O: Newtown, Sonargaon, Narayangonj;
Tel. 01199-865814, Fax: 0447600092

Unit 3: Anurpura, Gazaria, Munshigonj;

Tel. 01199-8555694, Fax: 04476001562

Web Address: www.bashundharapapermills.com