Bangladesh

Energypac to raise Tk 150cr from capital market

Energypac Power Generation is set to raise Tk 150 crore through initial public offering (IPO), the proceeds of which will be used to make 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 across the country," 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 in order to 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 increase LPG consumption in Bangladesh, where 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 establish LPG pumps and conversion workshops at nearly 200 of Padma Oil's registered filling stations.

Currently, Energypac operates 30 LPG pumps at various private filling stations but is permitted to establish up to 300 LPG filling stations.

"We want to create a new possibility for industrialisation by establishing LPG installations in new places so that locals have employment and can also participate in the economy," Raza said.

The power 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 has the capacity to store 3,000 tonnes of LPG at its existing plant in Dacope but this figure is set to increase by 1,800 tonnes after the facility's ongoing expansion is complete.

Energypac's net asset value per share with revaluation reserves is currently Tk 45.15, as per the company's consolidated financial report for fiscal 2018-19, when its consolidated earnings per share was Tk 3.13.

The company has state-of-the-art manufacturing facilities for 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 as well as the 15,000 to 20,000 new cylinders that are produced at the factory every day.

G-Gas is just one of the four or five companies that produce LPG cylinders even though there are 22 businesses in the country that produce LPG.

G-Gas aims to crank out 1 lakh cylinders per month by 2021, according to the company's officials.

After meeting local demand, the extra cylinders will be exported, they added.

Besides, soon after LPG production began in Bangladesh in 2018, G-Gas started construction on another facility on the banks of Shitalakshya river in Narayanganj.

The new facility will feature a 1200-tonne capacity spherical tank which will supply auto-gas to the capital and other surrounding districts, the company officials said.

Besides, G-Gas plans to set up 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 is providing fuel services to 3.5 lakh customers and as per the company's calculations, they currently have a market share of 9 per cent. 

Football news:

With Lukaku, it is useless to play in a power struggle. Shakhtar defender Bondar on the Inter forward
Ivanov will serve the match OF AZ-Rijeka in the Europa League. Rotor appealed his refereeing in the game with Loko
Gasperini on Ajax: it's not easy for everyone Against them. Atalanta made a great comeback
Real Madrid came away from defeat for the 8th time in a Champions League match, losing by 2 goals. The club has updated its record
Felix on red Bull's double: I enjoy playing in the Champions League the Most
Casemiro about 2:2 with Gladbach: The opponent entered the Real Madrid penalty area twice and scored twice. This is football
Guilherme about 1:2 with Bayern: Loko again showed that he can play against any opponent