Energypac to raise Tk 150cr from capital market
Energypac Power Generation is defined to improve Tk 150 crore through initial public offering (IPO), the proceeds of which will be used to create liquid petroleum gas (LPG) more available as a primary fuel source for vehicles in Bangladesh and repay the company's bank loans.
"We aim to eradicate the deficit in the country's power generation system and collectively enhance the lives of the people in the united states," said Abu Sayed Raza, general manager of Energypac.
Having previously received approval from the Bangladesh Securities and Exchange Commission, Energypac completed the share bidding process on September 24 so that you can fix a cut-off price for its trading debut.
Aside from repaying bank loans, the company will use the funds to procure LPG carriers, accessories and imported cylinders in a bid to secure a bigger stake in the growing domestic market for green fuel.
As a part of the government's ongoing effort to improve LPG consumption in Bangladesh, where in fact the reserves of other natural gases are depleting rapidly, the state-run Padma Oil Company signed an agreement with Energypac in early September.
Under the agreement, Energypac aims to determine LPG pumps and conversion workshops at practically 200 of Padma Oil's registered filling stations.
Currently, Energypac operates 30 LPG pumps at various private filling stations but is permitted to determine up to 300 LPG filling stations.
"We want to create a new opportunity for industrialisation by establishing LPG installations in new places so that locals have employment and will also take part in the economy," Raza said.
The energy engineering company, which is certified by the International Organisation for Standardisation, introduced its G-Gas LPG brand as a part of its efforts to meet the country's growing demand for clean energy.
G-Gas LPG currently offers household, commercial, bulk LPG and auto-gas solutions across the country.
Around 26 km away from Khulna city, the G-Gas plant was established in Dacope upazila in 2011.
The company can store 3,000 tonnes of LPG at its existing plant in Dacope but this figure is defined to improve by 1,800 tonnes following the facility's ongoing expansion is complete.
Energypac's net asset value per tell revaluation reserves happens to be Tk 45.15, according to the business's consolidated financial report for fiscal 2018-19, when its consolidated earnings per share was Tk 3.13.
The business has state-of-the-art manufacturing facilities because of its G-Gas and Steelpac products, assembly plants for JAC, which is a commercial vehicle brand, and GLAD, a producer of diesel generators.
At the G-Gas plant in Khulna, at least 25,000 LPG cylinders are filled each day. This includes refilling used bottles along with the 15,000 to 20,000 new cylinders that are produced at the factory each day.
G-Gas is just among the four or five companies that produce LPG cylinders despite the fact that there are 22 businesses in the united states that produce LPG.
G-Gas aims to crank out 1 lakh cylinders per month by 2021, based on the company's officials.
After meeting local demand, the excess cylinders will be exported, they added.
Besides, immediately after LPG production commenced in Bangladesh in 2018, G-Gas started construction on another facility on the banks of Shitalakshya river in Narayanganj.
The brand new facility will include a 1200-tonne capacity spherical tank which will supply auto-gas to the administrative centre and other surrounding districts, the business officials said.
Besides, G-Gas plans to create bottling plants in Chattogram, Sylhet and Bogra to deliver LPG to the customer's doorstep, said Lutfar Rahman, deputy general manager of G-Gas.
At present, G-Gas offers fuel services to 3.5 lakh customers and as per the business's calculations, they now have a market share of 9 %.
