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2
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Ratio 2016-17 2015-16 2014-15 2013-14 2012-13

Stock Price 93.15 92 50.65 - -
EPS 5.33 6.55 3.88 4.83 4.73
Book Value Per Share 43.61 41.24 32.22 31.34 30.52

P/E Ratio 17.48 14.05 13.05

P/BV Ratio 2.14 2.23 1.57
Dividend Yield (%) 2.21 1.65 4 - -
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Remuneration Paid to Top Six Salaried Officers

Name Designation Amount (BDT)

Mr. Md. Shafiqul Islam Talukder Chief Financial Officer & Company Secretary 1980000
Md. Jahangir Alam Director 1200000
Mr. Md. Alamgir Kabir Director 1200000

Mr. Khurshed Alam Head of Marketing, Sales & Distribution 1800000

Mr. Kazi Md. Shafiqur Rahman Head of Accounts & Finance 900000
Engr. Quamrul Hasan Plant-in-Charge 900000
Total 7980000

Total Salary & Allowances 342816397

Executives Compensation / Total

Compensation 2.33%
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Particulars Amount (Million

BDT)
Vertical Roller Machine (VRM) 1200

Jetty Construction 650

Factory Building 240

Repeat Public Offering Expenses (5% of the Entire 110

Offering)
Total 2200
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For preparing the pro-forma Income Statement, following assumptions are made:

 For calculating the projected revenue the average sales growth rate for the last 5 years was calculated. Then the
sales growth rate is used to calculate the revenue for the next 5 years.

 The amount of expected cost of goods sold for the next 5 years was calculated by using the average of the cost of
goods sold as a percentage of sales.

 All the other expenses were estimated using the average percentage of each particular expense as a percentage of
sales.
The amount of transfer to the reserve that means to the retained earnings was calculated by deducting the dividend
payment from the profit or loss for that particular period.
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For preparing the pro-forma Income Statement, following assumptions are made:
 The amount of current assets are estimated by using the average of each of the current assets as a percentage of
sales.
 The amount of current liabilities were also estimated using the same procedure.
 The amount of estimated retained earnings of the company was estimated by adding the transfer to the reserve of
the year for which the retained earnings will be calculated with the retained earnings of the previous year.
 The amount of non-controlling interest was estimated by using the average of non-controlling interest as a
percentage of sales for the company.
 The amount of long term debt was kept stable as the company did not announce any type of long term debt taking
plan and the debt to equity ratio of the company is very high of 1.85.
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Particulars Rate

Risk free rate-10 years treasury bond rate 7.50%

Market return 13.71%

Company beta 1.64

Cost of equity 17.68%

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Particulars 2017-2018 E 2018-2019E 2019-2020E 2020-2021E 2021-2022E

onwards

Discounted free cash flow 438.07 493.01 500.11 507.31 12490.62

Value of operation 14429.11

Interest bearing debt 5672.03
Equity value 8757.08
Number of shares 105.45
Value per share 83.04
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Year 2017-2018 E 2018-2019E 2019-2020E 2020- 2021-

2021E 2022E
onwards
Dividend 394.46 444.63 501.19 564.94 636.80
Cost of equity 17.68%
Discounted Dividend 335.19 321.07 307.53 294.57 5066.75
Value of equity 6325.114518

Number of shares 105450000

Value per share 59.98

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To calculate the proposed issuing share price the average of the value per share in the
two methods will be used:

Average of the two values = (83.044+59.98)/2

= 71.51

So the proposed share price will be BDT 70 as the investment banker is planning to
issue the share slightly below the value of the shares. The share price will also be
lower than the current market price of the share which was 76.40 during 9th July 2018.
So proposed share price BDT 70
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Premier Cement Mills Limited is planning to raise BDT 2,200,000,000 to finance the purchase of the new equipment
for the expansionary project of the company. The company will need BDT 2,090,000,000 for the purchase of the
equipment and the rest is to cover to flotation cost of the issue which is 5% of the total issue.

So the company need to issue:

Number of shares needed to be issued = (2,200,000,000/70)

= 31428572
Premier Cement Mills Limited will issue 31428572 at BDT 70 to raise BDT 209 million for the financing of the
purchase of new equipment.