Paper and printing industry company Web Coats PLC will raise Tk 5 crore through Qualified Investor Offer (QIO) from the SME market . With the money raised, the company will pay off equipment imports, working capital and debt. This information is known from related sources.
It is known that Web Coats has already applied to Bangladesh Securities and Exchange Commission (BSEC) for collecting money from the capital market.
The analysis of the prospectus shows that the paid up capital of Tk 28 crore 1 lakh 41 thousand will be the capital of this company after QIO of Tk 33 crore 1 lakh 41 thousand. In other words, subject to the approval of BSEC, the company will issue 5 million shares in the SME market and raise Tk 5 crore. Out of the raised money, machinery will be purchased at 222 million 50 thousand taka, debt will be paid at 1 crore 42 million 70 thousand taka, 1 crore 7 lakh 80 thousand taka will be saved as current capital and 27 lakhs will be spent on QIO processing.
As per the information in the prospectus, the total revenue and profit margin of the company has been satisfactory for the last five years. The total revenue of the company in June 2018 was 89 crore 82 lakh 61 thousand 916 taka. Against this, the profit of the company has been 8 crore 60 lakh 60 thousand 93 taka. Besides, in 2019, against the revenue of 57 crore 32 lakh 9 thousand 686 taka, 4 crore 63 lakh 231 taka, in 2020, against 58 crore 40 lakh 96 thousand 721 taka, 3 crore 96 lakh 92 thousand 407 taka, in 2021, 45 crore 68 lakh 54 thousand 170 2 crore 92 lakh 17 thousand 877 rupees, 4 crore 37 lakh 80 thousand 738 rupees against 48 crore 61 lakh 23 thousand 882 rupees in 2022 and 32 crore 39 lakh 89 thousand 31 rupees till March 2023 against the revenue of the company. 2 crore 47 lakh 60 thousand 397 taka.
An analysis of the company’s earnings per share (EPS) for the previous year shows that the company’s EPS in 2018 was Rs.30.74. In addition, the EPS of the company is Tk 16.54 in 2019, Tk 14.18 in 2020, Tk 10.43 in 2021, Tk 15.64 in 2022 and up to March 2023 the EPS is Tk 0.90.
The company authorities said that the profit of the company has decreased slightly in 2019 and 2021 mainly due to the decrease in demand and the increase in the price of raw materials. However, it increased to around 50 percent in 2022 due to new production lines and product diversification. Currently, the asset value per share of the company is Tk 15.92.
Research has revealed that this company, which is 100% export dependent, produces and supplies more than 10 products. Among them – self adhesive paper, photo inlay, tissue paper, gum tape, hang tag, size tag, back board, neck board, price tag, paper bent and self copy computer continuous paper. Supplying these products to domestic and foreign exporters through its own distribution channel is the main source of income of the company. Basically, 70 percent of the company’s core revenue comes from the export of self-adhesive paper.
It is learned that Web Coats plc started its journey as a private limited company in April 2013 and started commercial production in January 2014. The company was converted from a private limited company to a public limited company in February 2023. The company has its own factory (147 Decimal) at Lackirchar in Keraniganj.
A total of 141 officers and employees are working in the company’s offices and factories. Among them all jobs are permanent. Besides, the minimum salary in the company is Rs. 8,500. Company authorities consider human resource as the most valuable. Because of the future of the company depends on effective and efficient use of human resources. And so the company ensures various benefits including monthly salary for officers and employees along with festival allowances, annual increments. Also, the board of directors of the company distributes 5 percent of the profits to the workers through the labor welfare fund as per the Labor Welfare Act-2006.
Talking about the overall issue of Web Coats PLC, the company’s director Rahat Reza Ami said, Bangladesh is an import-exporting country. Although a sustainable cover design products is very important in terms of exports, we have not been able to acquire the capacity to set up a modern cover industry so far. As a result, our development activities are hampered and we are gradually falling behind the Sustainable Development Goals. He further said that we have been playing a role in the country’s export sector by setting up cover industries from the beginning and have decided to list Web Coats plc in the capital market to play a greater role in the future.
Rahat Reza Ami said that by listing in the capital market, the participation of ordinary investors in the country’s economy will increase along with the increase in the caliber of our own production process. I strongly believe that in the process Web Coats PLC will be able to play a more significant role in the export sector of the country.
