Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 1

Welcome to Our Presentation

Repeat Public Offering -------PMCL

Legal Finance & Investment Corporation LTD (LFIC)

Legal Finance & Investment Corporation Ltd

Sl no. Name ID No.

1 JANNATUL NAIMA (CEO) 18-065

2 OBYDUL HOQE (CMO) 18-087

3 BILLAL HOSEN (CFO) 18-155

4 SHAHANAZ PARVIN (Project manager) 18-259

5 SAFWAN CHOWDHURY (SCM) 18-263

Prospectus - PMCL

PMCL

• One of the supreme and tech-oriented cement manufacturers in Bangladesh.

• Manufactures European standard Cement using the best raw materials and technical excellence.

• the Company established in 2001 and started its commercial operation in 2004

• cement is certified by Buet, BSTL and ISO 9001:2008 and fully automated manufacturing facility complies with Bangladeshi BDS EN, American AStM, European EN and Indian BIS standards.

• aggregate capacity amount of 2.82 Million Mt per annum.

Why Should You Invest ?

Why Should You Invest ?

Achievements

• National Cement Mills LimitedAssociate

Company

• Premier Power Generation Limited.Subsidiary

Company

Product Details

Currently producing 8000 tons per day.Produces- 1. Ordinary Portland Cement 2. Composite Portland Cement Exports 12% products to India, Myanmar and

Thailand. 2011 2012 2013 2014 2015(expected)0%

5%

10%

15%

20%

25%

30%

9%12%

15%

21%

28%

Increase in sales(%)

Year

Incr

ease

in s

ales

(%)

Uses of FundSl. No. Particulars Amount in BDT

millionImplementation Schedule

1. Machineries for 3rd Unit

338 Within 6 month of getting RPO proceeds

2. Wheel Loader 140 Within 4 months

3. Barge Loader 430 Within 3 months

4. E-crane 130 Within 1 month

5. Others 642 Within 5 months

2010 2012 2014 2015 2016(expected)

0.603000000000001

1.2

2.42.6

3.5

Years

Prod

uctio

n Ca

paci

ty(in

mill

ion

MT)

Financial Health of the Company

RISK FACTORS MANAGEMENT’S PERCEPTION ABOUT THE RISKS

Interest Rate Risk(volatile interest rate over the year-enhances the cost of fund )

Exchange Rate Risk (most of the raw materials are imported from abroad- unfavorable volatility of foreign currency may affect the profitability )

Industry Risks(market will be more competitive

due to excess capacity in the industry-competition on pricing of

products) Market and Technology Related Risks

(technological obsolescence as capital based industry)

emphasizes on equity based financing to reduce dependency on borrowed fund- lower impact upon the financial performance

favorable adjustment of price in case of adverse exchange rate fluctuations and international price movements-minimizing exchange rate risk by boosting export earnings, which contribute around 5.95% of total revenue

industry is growing at an average rate of 10%-12% per annum- geographical advantage as located in Chittagong

expanding production capacity with the latest technology

RISK FACTORS MANAGEMENT’S PERCEPTION ABOUT THE RISKS

Potential or Existing Government Regulations(unfavorable Income Tax Rules, VAT Rules, environmental rules)

Sourcing of Raw Materials(raw materials of cement imported from different countries-ability to source raw materials specially clinker at competitive price)

Supply Chain Management(Many strong producers including multinationals-efficient supply chain)

 

unlikely the government will initiate any fiscal measure having adverse effect on the growth of the industry

preferential services contract with shipping co.-bilateral understanding with independent suppliers

distribution fleet-dedicated covered vans-bulk carriers-lighter vessels

Refund Of Subscription Money

Subscription by and Refund to Non-Resident Bangladeshi (NRB)

• Through banking channel for onward deposit of the refund money into the applicant’s bank

• Through issuance of refund warrant

• through crossed bank cheque marking “Account Payee only”

• paid in Taka or US dollar or UK pound sterling or EURO at the rate of exchange mentioned

Features of RPO1.Valuation based on Net Asset Value per share:

Share capital 1,054,500,000

Revaluation reserve 356,868,534

Tax holiday reserve 2,274,386

Share premium 441,835,000

Retained earnings 1,162,879,482

total equity 3,018,357,402

Number of Share outstranding 106506740

Net Assets Value(NAV) 28.34

2. Weighted average Earnings Based Price

Year ended EPS No of share (2)

Net Profit After tax (3)

Weight of No of Shares (4)

Weighted Average Net Profit After Tax5= 4*3on June (1)

2012

93220050 174,321,4940.311

54247035.491.87

2013

99833513 499,167,5670.333

166355993.65

2014 10650674

0 509,102,218

0.356 181,008,020.61 4.78

Total 299560304

1,182,591,279 1 401611049.7

Weighted Average Net Profit After Tax during the period 2012-14 401611049.7

No of shares outstanding as on June 30,2014 106506740EPS based on Weighted Average Net Profit After Tax 3.770757128

Average DSE market P/E 30 earning Based price per share 113.1

3. Share price based on projected earnings per share

Prospectus.xlsx

Year 2015 2016 2017

Projected Net profit after tax 625,454,831.33 749,158,081.44 884,619,418.09

Projected EPS 5.90 7.06 8.34

Average projected EPS 7.10

Average market P/E for June, 2015 33.25

Value per share based on projected EPS 236.08

4. Price based on P/E of similar companies

average market P/E of similar company

P/E EPS

HEIDELB cement 14.08 26.09

CONFIDCEM 14.44 6.24

MEGHNACEM 11.83 9.24

ARAMITCEM 61.84 0.51

LAFSURFCEML 53.25 2

MICEMENT 18.22 4.49

Average 28.94333 8.095

Price Based on P/E of similar companies

average P/E of similar company

28.94

EPS(Dcember 2014) 8.095

value based on P/E of Similar stock

234.30

Share Allotment Particulars No. of

SharesAmount

(Tk.)

A. 20% of RPO of ordinary Shares are reserved for affected small investors

2,400,000

52,800,000

B. 10% of RPO of Shares shall be reserved for Non ResidentBangladeshis (NRB)

1,200,000

26,400,000

C. 10% of RPO of Shares shall be reserved for Mutual Funds andCollective Investment schemes registered with the Commission

1,200,000

26,400,000

D. Remaining 60% of RPO of Shares shall be opened for subscription by The General Public.

7,200,000

158,400,000

Total 12,000,000 264,000,000

Plan of distribution

Sl.

No.Name and address of underwriters

No. of Share

UnderwrittenAmount (TK.)

1 ICB Capital Management Limited

BDBL Bhaban (Level-16), 8 RajukAvenue,

Dhaka-1000

3,000,000

420000000

2 IIDFC Capital Limited

Eunoos Trade Center (Level-7), 52-53, Dilkusha C/A,

Dhaka-1000

3,000,000

420000000

3 Total 6,000,000

840000000

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