PROSPECTUS - CSE · the prospectus and risk factors carefully, assess their own financial...

“Investment in capital market involves certain degree of risks. The investors are required to read the prospectus and risk factors carefully, assess their own financial conditions and risk taking ability before making their investment decisions.”

ISSUE DATE OF THE PROSPECTUS: NOVEMBER 9, 2020

Initial Public Offer (IPO) for 40,293,566 ordinary shares, from which 20,146,766 ordinary shares are reserved for Eligible Investors (EIs) at their own bid price and quantity on highest to lowest bid basis in a descending order of individual bid price till exhaustion of the quota for EI category at on or above the cut-off price Tk. 35.00 and remaining 20,146,800 ordinary shares at a 10% discounted price from the cut-off price i.e Tk. 31.00 per share for General Public including NRBs totaling Tk. 1,500,000,000.00.

Opening date for subscription: December 07, 2020

Closing date for subscription (cut-off date): December 13, 2020

PROSPECTUS OF

MANAGER TO THE ISSUE

CREDIT RATING STATUS

Rating Particulars Long Term Short Term

Entity Rating AA2 ST-3

Outlook Stable

Rated by Credit Rating Agency of Bangladesh Limited (CRAB)

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“If you have any query about this document, you may consult the issuer, issue manager and underwriter”

A person interested to get a prospectus may obtain from the issuer and the issue manager

ISSUER COMPANY CONTACT PERSON CONTACT NUMBER Energypac Power Generation Limited Energy Center, Plot 25, Tejgaon Industrial Area, Tejgaon, Dhaka 1208

Mr. Md. Alauddin Shibly

Company Secretary

Tel: +88 02 887 06 69 Fax: +88 02 887 06 97 e-mail: [email protected] Website: www.energypac.com

ISSUE MANAGER CONTACT PERSON CONTACT NUMBER

LankaBangla Investments Limited Assurance Nazir Tower, Level – 06, 65/B, Kemal Ataturk Avenue, Banani, Dhaka – 1213

Mr. Iftekhar Alam

Chief Executive Officer

Tel: +88 02 55 03 48 53-5 Fax: +88 02 55 03 48 56 e-mail: [email protected] Website: www.lankabangla-investments.com

REGISTRAR TO THE ISSUE CONTACT PERSON CONTACT NUMBER

ICB Capital Management Limited Green City Edge (5th & 6th Floor), 89, Kakrail, Dhaka-1000.

Shukla Das


Tel: +88 02 830 05 55 Fax: +88 02 830 03 96 e-mail: [email protected] Website: www.icml.com.bd

UNDERWRITERS CONTACT PERSON CONTACT NUMBER

LankaBangla Investments Limited Assurance Nazir Tower, Level – 06, 65/B, Kemal Ataturk Avenue, Banani, Dhaka – 1213

Mr. Iftekhar Alam Chief Executive Officer



Shukla Das Chief Executive Officer

Tel: + 88 02 830 05 55 Fax: + 88 02 830 03 96 e-mail: [email protected] Website: www.icml.com.bd

AFC Capital Limited Saiham Sky View Tower (11th Floor), 45, Bijoy Nagar, Dhaka-1000.

Mr. Golam Md. Ahsan Kabir Head Primary Market Services

Tel: + 88 02 839 23 71 Fax: + 88 02 839 23 72 e-mail: [email protected] Website: www.afccl.com

NBL Capital and Equity Management Limited Printers Building (8th Floor), 5 Rajuk Avenue, Dhaka-1000.

Ms. Kamrun Naher


Tel: + 88 02 471 18 805 Fax: + 88 02 471 18 807 e-mail: [email protected] Website: www.nblceml.com

Prime Finance Capital Management Limited PFI Tower (7th Floor), 56-57, Dilkusha C/A, Dhaka-1000.

Mr. Mohammad Rajibul Islam

Head of Public Issue

Tel: + 88 02 958 48 74 Fax: + 88 02 985 49 22 e-mail: [email protected] Website: www. primefincap.com

EBL Investments Limited Jiban Bima Bhaban (Ground Floor), 10, Dilkusha C/A, Dhaka-1000

Mr. Mohammad Sayedur Rahman AVP, Primary Market Operations

Tel: + 88 02 471 11 096 Fax: + 88 02 471 11 218 e-mail: [email protected] Website: www.eblinvestments.com

AUDITORS’ OF THE COMPANY CONTACT PERSON CONTACT NUMBER

Howladar Yunus & Co. Chartered Accountants 67 Dilkusha Commercial Area (2nd Floor) Dhaka - 1000, Bangladesh

Mr. Zahidur Rahman, FCA Partner

Tel: +88 02 955 41 19, Fax: +88 02 956 29 89 e-mail: [email protected] Website: www.hyc.com.bd

CREDIT RATING COMPANY CONTACT PERSON CONTACT NUMBER

Credit Rating Agency of Bangladesh Limited D H Tower,6 Panthapath, Level 15, Dhaka 1215

Mr. Mohammed Nazrul Islam

Bhuiyan FAVP

Tel: + 8802-55013678 Fax: 8802-55013679 e-mail: [email protected] Website: www.crab.com.bd

VALUAR COMPANY CONTACT PERSON CONTACT NUMBER

Malek Siddiqui Wali Chartered Accountants 9-G Motijheel, Commercial Area, Dhaka-1000

Mr. MD. Waliullah FCA

Partner

Tel: +88 02 9513471 Fax: +88 02 9516236 e-mail: [email protected] Website: www.msw-bd.com

http://www.lankabangla-investments.com/mailto:[email protected]://www.icml.com.bd/http://www.lankabangla-investments.com/http://www.icml.com.bd/http://www.afccl.com/http://www.lankabangla-investments.com/mailto:[email protected]://www.eblinvestments.com/mailto:[email protected]:[email protected]://www.msw-bd.com/

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“CONSENT OF THE BANGLADESH SECURITIES AND EXCHANGE COMMISSION HAS BEEN OBTAINED TO THE ISSUE/OFFER OF THESE SECURITIES UNDER THE SECURITIES AND EXCHANGE ORDINANCE, 1969, AND THE BANGLADESH SECURITIES AND EXCHANGE COMMISSION (PUBLIC ISSUE) RULES, 2015. IT MUST BE DISTINCTLY UNDERSTOOD THAT IN GIVING THIS CONSENT THE COMMISSION DOES NOT TAKE ANY RESPONSIBILITY FOR THE FINANCIAL SOUNDNESS OF THE ISSUER COMPANY, ANY OF ITS PROJECTS OR THE ISSUE PRICE OF ITS SECURITIES OR FOR THE CORRECTNESS OF ANY OF THE STATEMENTS MADE OR OPINION EXPRESSED WITH REGARD TO THEM. SUCH RESPONSIBILITY LIES WITH THE ISSUER, ITS DIRECTORS, CHIEF EXECUTIVE OFFICER, MANAGING DIRECTOR, CHIEF FINANCIAL OFFICER, COMPANY SECRETARY, ISSUE MANAGER, ISSUE MANAGER’S CHIEF EXECUTIVE OFFICER, UNDERWRITERS, AUDITOR(S), VALUER AND/OR CREDIT RATING COMPANY (IF ANY)."

"This being the first issue of the issuer, there has been no formal market for the securities of the issuer. The face value of the securities is Tk. 10.00 (ten) and the issue price is Tk. 31.00 i.e. ‘3.10 times for General Public” of the face value. The issue price has been determined and justified by the issuer and the issue manager/or bidding by the eligible investors as stated under the paragraph on “Justification of Issue Price” should not be taken to be indicative of the market price of the securities after listing. No assurance can be given regarding an active or sustained trading of the securities or the price after listing."

"Investment in securities involves a degree of risk and investors should not invest any funds in this offer unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this offer. For taking an investment decision, investors must rely on their own examination of the issuer and the offer including the risks involved. The securities have not been recommended by the Bangladesh Securities and Exchange Commission (BSEC) nor does BSEC guarantee the accuracy or adequacy of this document. Specific attention of investors is invited to the statement of ‘risk factors’ given on page number(s) (227-237).

"The issuer, having made all reasonable inquiries, accepts responsibility for and confirms that this prospectus contains all material information with regard to the issuer and the issue, that the information contained in the prospectus are true, fair and correct in all material aspects and are not misleading in any respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which make this document as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect."

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AVAILABILITY OF PROSPECTUS

Copy of Prospectus of Energypac Power Generation Limited may be obtained from the following institutions:

ISSUER COMPANY CONTACT PERSON CONTACT NUMBER Energypac Power Generation Limited Energy Center, Plot 25, Tejgaon Industrial Area, Tejgaon, Dhaka 1208

Mr. Md. Alauddin Shibly

Company Secretary

Tel: +88 02 887 06 69 Fax: +88 02 887 06 97 e-mail: [email protected] Website: www.energypac.com

ISSUE MANAGER CONTACT PERSON CONTACT NUMBER LankaBangla Investments Limited Assurance Nazir Tower, Level – 06, 65/B, Kemal Ataturk Avenue, Banani, Dhaka – 1213

Mr. Iftekhar Alam



REGISTRAR TO THE ISSUE CONTACT PERSON CONTACT NUMBER


Shukla Das


Tel: +88 02 830 05 55 Fax: +88 02 830 03 96 e-mail: [email protected] Website: www.icml.com.bd

UNDERWRITERS CONTACT PERSON CONTACT NUMBER LankaBangla Investments Limited Assurance Nazir Tower, Level – 06, 65/B, Kemal Ataturk Avenue, Banani, Dhaka – 1213

Mr. Iftekhar Alam Chief Executive Officer



Shukla Das Chief Executive Officer

Tel: + 88 02 830 05 55 Fax: + 88 02 830 03 96 e-mail: [email protected] Website: www.icml.com.bd

AFC Capital Limited Saiham Sky View Tower (11th Floor), 45, Bijoy Nagar, Dhaka-1000.

Mr. Golam Md. Ahsan Kabir Manager

Tel: + 88 02 839 23 71 Fax: + 88 02 839 23 72 e-mail: [email protected] Website: www.afccl.com

NBL Capital and Equity Management Limited Printers Building (8th Floor), 5 Rajuk Avenue, Dhaka-1000

Ms. Kamrun Naher Chief Executive Officer

Tel: + 88 02 471 18 805 Fax: + 88 02 471 18 807 e-mail: [email protected] Website: www.nblceml.com

Prime Finance Capital Management Limited PFI Tower (7th Floor), 56-57, Dilkusha C/A, Dhaka-1000.

Mr. Mohammad Rajibul Islam Head of Public Issue

Tel: + 88 02 958 48 74 Fax: + 88 02 985 49 22 e-mail: [email protected] Website: www. primefincap.com

EBL Investments Limited Jiban Bima Bhaban (Ground Floor), 10, Dilkusha C/A, Dhaka-1000

Mr. Mohammad Sayedur Rahman AVP, Primary Market Operations

Tel: + 88 02 471 11 096 Fax: + 88 02 471 11 218 e-mail: [email protected] Website: www.eblinvestments.com

STOCK EXCHANGES CONTACT PERSON CONTACT NUMBER Dhaka Stock Exchange Limited 9/F Motijheel C/A, Dhaka - 1000

Mr. Md. Afzalur Rahman Manager

Tel: +88 02 956 46 01-7, 88 02 966 69 44-8 Fax: +88 02 956 9755, +88 02 956 47 27 e-mail: [email protected] website: www.dsebd.org

Chittagong Stock Exchange Limited CSE Building, 1080, Sheikh Mujib Road, Chittagong - 4100

Mr. Mohammad Jabed Sarwar

Assistant Manager

Tel: +88 031 714 632-3 +88 031 720 871 Fax: +88 031 714 101; +88 02 951 39 11-15 e-mail: [email protected] website: www.cse.com.bd

Prospectus is also available on the websites of Energypac Power Generation Limited (www.energypac.com), LankaBangla Investments Limited (www.lankabangla-investments.com), BSEC (www.sec.gov.bd), DSE (www.dsebd.org), CSE (www.csebd.com) and Public Reference room of the Bangladesh Securities and Exchange Commission (BSEC) for reading and studying.

Prospectus is published in the following Newspapers:

Name of the Newspaper Date of Publication

The Business Standard

November 09, 2020 The Financial Express

The Daily Bonik Barta

The Daily Samakal

http://www.lankabangla-investments.com/http://www.icml.com.bd/http://www.lankabangla-investments.com/http://www.icml.com.bd/http://www.afccl.com/http://www.lankabangla-investments.com/mailto:[email protected]://www.eblinvestments.com/mailto:[email protected]://www.cse.com.bd/

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DEFINITIONS AND ACRONYMS/ELABORATION

Term Elaboration

AGM Annual General Meeting

Allotment Allotment of shares

BAS Bangladesh Accounting Standards

BPDB Bangladesh Power Development Board

BDT Bangladeshi Taka

BSEC Bangladesh Securities and Exchange Commission

Busbar A busbar in electrical power distribution refers to thick strips of copper or aluminum that conduct electricity within a switchboard, fuel cell, distribution board, substation, or other electrical apparatus.

CAGR Compounded Annual Growth Rate

CCPP Combined cycle power plant

Certificate Share Certificate

CDBL Central Depository Bangladesh Limited

CIB Credit Information Bureau

CNG Compressed Natural Gas (CNG) is a fossil fuel substitute for gasoline (petrol), diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels.

EPC EPC is an acronym which stands for Engineering, Procurement and Construction. It is a common form of contracting arrangement within the construction industry. Under an EPC contract, the contractor designs the installation, procures the necessary materials and builds the project, either directly or by subcontracting part of the work.

EPS Earnings per Share

FY Fiscal Year

GOB Government of Bangladesh

GP Margin Gross profit margin

ICB Investment Corporation of Bangladesh

IPO Initial Public Offering

IPP Independent Power Producer

Issuer Energypac Power Generation Limited

Issue Manager LankaBangla Investments Limited

JAC Anhui Jianghuai Automobile Co., Ltd.

JCB J.C. Bamford Excavators Limited

KW kilowatt

LPG Liquefied petroleum gas

MW Mega Watt

mmcfd Million Cubic Feet per Day NAV Net Asset Value

NG Natural Gas

NBFI Non-Banking Financial Institution

NP Margin Net Profit Margin

NRB Non Resident Bangladeshi

Sponsors The sponsor shareholders of Energypac Power Generation Limited

SIPP Small Independent Power Producers

Turnkey A turnkey or a turnkey project (also spelled turn-key) is a type of project that is constructed by a developer and sold or turned over to a buyer in a ready-to-use condition.

USD United States Dollar

VAT Value Added Tax

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TABLE OF CONTENTS

Page No. EXECUTIVE SUMMARY 19

ABOUT THE INDUSTRY 19

ABOUT THE ISSUER 20

FINANCIAL INFORMATION 20

FEATURES OF THE ISSUE AND ITS OBJECTS 21

LEGAL AND OTHER INFORMATION 21

PROMOTERS’ BACKGROUND 21

CAPITAL STRUCTURE AND HISTORY OF CAPITAL RAISING 22

SUMMARY OF VALUATION REPORT OF SECURITIES 23

OTHERS 23

CONDITIONS IMPOSED BY THE COMMISSION IN THE CONSENT LETTER 24

DECLARATION AND DUE DILIGENCE CERTIFICATES AS PER ANNEXURE- A, B AND C 31

ABOUT THE ISSUER 40

NAME OF THE ISSUER, DATES OF INCORPORATION AND COMMENCEMENT OF ITS COMMERCIAL OPERATIONS, ITS LOGO, ADDRESSES OF ITS REGISTERED OFFICE, OTHER OFFICES AND PLANTS, TELEPHONE NUMBER, FAX NUMBER, CONTACT PERSON, WEBSITE ADDRESS AND E-MAIL ADDRESS;

40

THE NAMES OF THE SPONSORS AND DIRECTORS OF THE ISSUER; 40

THE NAME, LOGO AND ADDRESS OF THE AUDITORS AND REGISTRAR TO THE ISSUE, ALONG WITH THEIR TELEPHONE NUMBERS, FAX NUMBERS, CONTACT PERSONS, WEBSITE AND E-MAIL ADDRESSES;

40

THE NAME(S) OF THE STOCK EXCHANGES WHERE THE SPECIFIED SECURITIES ARE PROPOSED TO BE LISTED. 41

CORPORATE DIRECTORY OF THE ISSUER 42

DESCRIPTION OF THE ISSUER 43

THE SUMMARY OF THE INDUSTRY AND BUSINESS ENVIRONMENT OF THE ISSUER. THE SUMMARY SHALL NOT BE ONE-SIDED OR BIASED TO HIGHLIGHT THE ISSUER OR THE ISSUE;

43

SUMMARY OF CONSOLIDATED FINANCIAL, OPERATING AND OTHER INFORMATION. 44

GENERAL INFORMATION OF ISSUER 45

NAME AND ADDRESS, TELEPHONE AND FAX NUMBERS OF THE REGISTERED OFFICE, CORPORATE HEAD OFFICE, OTHER OFFICES, FACTORY, BUSINESS PREMISES AND OUTLETS OF THE ISSUER;

45

THE BOARD OF DIRECTORS OF THE ISSUER 45

NAMES, ADDRESSES, TELEPHONE NUMBERS, FAX NUMBERS AND E-MAIL ADDRESSES OF THE CHAIRMAN, MANAGING DIRECTOR, WHOLE TIME DIRECTORS, ETC. OF THE ISSUER;

45

NAMES, ADDRESSES, TELEPHONE NUMBERS, FAX NUMBERS AND E-MAIL ADDRESSES OF THE CFO, COMPANY SECRETARY, LEGAL ADVISOR, AUDITORS AND COMPLIANCE OFFICER;

46

NAMES, ADDRESSES, TELEPHONE NUMBERS, FAX NUMBERS, CONTACT PERSON, WEBSITE ADDRESSES AND E-MAIL ADDRESSES OF THE ISSUE MANAGER(S), REGISTRAR TO THE ISSUE ETC

46

DETAILS OF CREDIT RATING 47

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THE NAMES OF ALL THE CREDIT RATING AGENCIES FROM WHICH CREDIT RATING HAS BEEN OBTAINED 47

THE DETAILS OF ALL THE CREDIT RATINGS OBTAINED FOR THE ISSUE AND THE ISSUER 47

THE RATIONALE OR DESCRIPTION OF THE RATINGS (S) SO OBTAINED, AS FURNISHED BY THE CREDIT RATING AGENCY(S) 47

OBSERVATIONS AND RISK FACTORS AS STATED IN THE CREDIT RATING REPORT 47

DETAILS OF UNDERWRITING 48

THE NAMES, ADDRESSES, TELEPHONE NUMBERS, FAX NUMBERS, CONTACT PERSONS AND E-MAIL ADDRESSES OF THE UNDERWRITERS AND THE AMOUNT UNDERWRITTEN BY THEM

48

DECLARATION BY THE UNDERWRITERS THAT THEY HAVE SUFFICIENT RESOURCES AS PER THE REGULATORY REQUIREMENTS TO DISCHARGE THEIR RESPECTIVE OBLIGATIONS

48

MAJOR TERMS AND CONDITIONS OF THE UNDERWRITING AGREEMENTS 50

CAPITAL STRUCTURE OF ISSUER 51

AUTHORIZED, ISSUED, SUBSCRIBED AND PAID UP CAPITAL (NUMBER AND CLASS OF SECURITIES, ALLOTMENT DATES, NOMINAL PRICE, ISSUE PRICE AND FORM OF CONSIDERATION)

51

SIZE OF THE PRESENT ISSUE, WITH BREAK-UP (NUMBER OF SECURITIES, DESCRIPTION, NOMINAL VALUE AND ISSUE AMOUNT)

51

PAID UP CAPITAL BEFORE AND AFTER THE PRESENT ISSUE, AFTER CONVERSION OF CONVERTIBLE INSTRUMENTS (IF ANY) AND SHARE PREMIUM ACCOUNT (BEFORE AND AFTER THE ISSUE)

52

CATEGORY WISE SHAREHOLDING STRUCTURE WITH PERCENTAGE BEFORE AND AFTER THE PRESENT ISSUE AND AFTER CONVERSION OF CONVERTIBLE INSTRUMENTS (IF ANY)

52

WHERE SHARES HAVE BEEN ISSUED FOR CONSIDERATION IN OTHER THAN CASH AT ANY POINT OF TIME, DETAILS IN A SEPARATE TABLE, INDICATING THE DATE OF ISSUE, PERSONS TO WHOM THOSE ARE ISSUED, RELATIONSHIP WITH THE ISSUER, ISSUE PRICE, CONSIDERATION AND VALUATION THEREOF, REASONS FOR THE ISSUE AND WHETHER ANY BENEFITS HAVE BEEN ACCRUED TO THE ISSUER OUT OF THE ISSUE

52

WHERE SHARES HAVE BEEN ALLOTTED IN TERMS OF ANY MERGER, AMALGAMATION OR ACQUISITION SCHEME, DETAILS OF SUCH SCHEME AND SHARES ALLOTTED

54

WHERE THE ISSUER HAS ISSUED EQUITY SHARES UNDER ONE OR MORE EMPLOYEE STOCK OPTION SCHEMES, DATE-WISE DETAILS OF EQUITY SHARES ISSUED UNDER THE SCHEMES, INCLUDING THE PRICE AT WHICH SUCH EQUITY SHARES WERE ISSUED

54

IF THE ISSUER HAS MADE ANY ISSUE OF SPECIFIED SECURITIES AT A PRICE LOWER THAN THE ISSUE PRICE DURING THE PRECEDING TWO YEARS, SPECIFIC DETAILS OF THE NAMES OF THE PERSONS TO WHOM SUCH SPECIFIED SECURITIES HAVE BEEN ISSUED, RELATION WITH THE ISSUER, REASONS FOR SUCH ISSUE AND THE PRICE THEREOF

54

THE DECISION OR INTENTION, NEGOTIATION AND CONSIDERATION OF THE ISSUER TO ALTER THE CAPITAL STRUCTURE BY WAY OF ISSUE OF SPECIFIED SECURITIES IN ANY MANNER WITHIN A PERIOD OF ONE YEAR FROM THE DATE OF LISTING OF THE PRESENT ISSUE

54

THE TOTAL SHAREHOLDING OF THE SPONSORS AND DIRECTORS IN A TABULAR FORM, CLEARLY STATING THE NAMES, NATURE OF ISSUE, DATE OF ALLOTMENT, NUMBER OF SHARES, FACE VALUE, ISSUE PRICE, CONSIDERATION, DATE WHEN THE SHARES WERE MADE FULLY PAID UP, PERCENTAGE OF THE TOTAL PRE AND POST ISSUE CAPITAL, THE LOCK IN PERIOD AND THE NUMBER AND PERCENTAGE OF PLEDGED SHARES, IF ANY, HELD BY EACH OF THEM

55

THE DETAILS OF THE AGGREGATE SHAREHOLDING OF THE SPONSORS AND DIRECTORS, THE AGGREGATE NUMBER OF SPECIFIED SECURITIES PURCHASED OR SOLD OR OTHERWISE TRANSFERRED BY THE SPONSOR AND/OR BY THE DIRECTORS OF THE ISSUER AND THEIR RELATED PARTIES WITHIN SIX MONTHS IMMEDIATE PRECEDING THE DATE OF FILING THE RED-HERRING PROSPECTUS/ PROSPECTUS/ INFORMATION MEMORANDUM

56

THE NAME AND ADDRESS OF ANY PERSON WHO OWNS, BENEFICIALLY OR OF RECORD, 5% OR MORE OF THE SECURITIES OF THE ISSUER, INDICATING THE AMOUNT OF SECURITIES OWNED, WHETHER THEY ARE OWNED BENEFICIALLY OR OF RECORD, AND THE PERCENTAGE OF THE SECURITIES REPRESENTED BY SUCH OWNERSHIP INCLUDING NUMBER OF EQUITY SHARES WHICH THEY WOULD BE ENTITLED TO UPON EXERCISE OF WARRANT, OPTION OR RIGHT TO CONVERT ANY CONVERTIBLE INSTRUMENT

56

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THE NUMBER OF SECURITIES OF THE ISSUER OWNED BY EACH OF THE TOP TEN SALARIED OFFICERS, AND ALL OTHER OFFICERS OR EMPLOYEES AS GROUP, INDICATING THE PERCENTAGE OF OUTSTANDING SHARES REPRESENTED BY THE SECURITIES OWNED

56

DESCRIPTION OF BUSINESS OF ISSUER 58

THE DATE ON WHICH THE ISSUER COMPANY WAS INCORPORATED AND THE DATE ON WHICH IT COMMENCED OPERATIONS AND THE NATURE OF THE BUSINESS WHICH THE COMPANY AND ITS SUBSIDIARIES ARE ENGAGED IN OR PROPOSE TO ENGAGE IN

58

LOCATION OF THE PROJECT 59

PLANT, MACHINERY, TECHNOLOGY, PROCESS, ETC 59

DETAILS OF THE MAJOR EVENTS IN THE HISTORY OF THE ISSUER, INCLUDING DETAILS OF CAPACITY/FACILITY CREATION, LAUNCHING OF PLANT, PRODUCTS, MARKETING, CHANGE IN OWNERSHIP AND/OR KEY MANAGEMENT PERSONNEL ETC

59

PRINCIPAL PRODUCTS OR SERVICES OF THE ISSUER AND MARKETS FOR SUCH PRODUCTS OR SERVICES. PAST TRENDS AND FUTURE PROSPECTS REGARDING EXPORTS (IF APPLICABLE) AND LOCAL MARKET, DEMAND AND SUPPLY FORECASTS FOR THE SECTOR IN WHICH THE PRODUCT IS INCLUDED WITH SOURCE OF DATA

60

IF THE ISSUER HAS MORE THAN ONE PRODUCT OR SERVICE, THE RELATIVE CONTRIBUTION TO SALES AND INCOME OF EACH PRODUCT OR SERVICE THAT ACCOUNTS FOR MORE THAN 10% OF THE COMPANY’S TOTAL REVENUES

62

DESCRIPTION OF ASSOCIATES, SUBSIDIARY AND HOLDING COMPANY OF THE ISSUER AND CORE AREAS OF BUSINESS THEREOF

62

HOW THE PRODUCTS OR SERVICES ARE DISTRIBUTED WITH DETAILS OF THE DISTRIBUTION CHANNEL. EXPORT POSSIBILITIES AND EXPORT OBLIGATIONS, IF ANY

63

COMPETITIVE CONDITIONS IN BUSINESS WITH NAMES, PERCENTAGE AND VOLUME OF MARKET SHARES OF MAJOR COMPETITORS

64

SOURCES AND AVAILABILITY OF RAW MATERIALS, NAMES AND ADDRESSES OF THE PRINCIPAL SUPPLIERS AND CONTINGENCY PLAN IN CASE OF ANY DISRUPTION

64

SOURCES OF, AND REQUIREMENT FOR, POWER, GAS AND WATER; OR ANY OTHER UTILITIES AND CONTINGENCY PLAN IN CASE OF ANY DISRUPTION

65

NAMES, ADDRESS(S), TELEPHONE NUMBER, WEB ADDRESS, E-MAIL AND FAX NUMBER OF THE CUSTOMERS WHO ACCOUNT FOR 10% OR MORE OF THE COMPANY’S PRODUCTS /SERVICES WITH AMOUNT AND PERCENTAGE THEREOF

65

NAMES, ADDRESS(S), TELEPHONE NUMBER, WEB ADDRESS, E-MAIL AND FAX NUMBER OF THE SUPPLIERS FROM WHOM THE ISSUER PURCHASES 10% OR MORE OF ITS RAW MATERIAL/ FINISHED GOODS WITH AMOUNT AND PERCENTAGE THEREOF

65

DESCRIPTION OF ANY CONTRACT WHICH THE ISSUER HAS WITH ITS PRINCIPAL SUPPLIERS OR CUSTOMERS SHOWING THE TOTAL AMOUNT AND QUANTITY OF TRANSACTION FOR WHICH THE CONTRACT IS MADE AND THE DURATION OF THE CONTRACT. IF THERE IS NOT ANY OF SUCH CONTRACT, A DECLARATION IS TO BE DISCLOSED DULY SIGNED BY CEO/MD, CFO AND CHAIRMAN ON BEHALF OF BOARD OF DIRECTORS

66

DESCRIPTION OF LICENSES, REGISTRATIONS, NOC AND PERMISSIONS OBTAINED BY THE ISSUER WITH ISSUE, RENEWAL AND EXPIRY DATES

67

DESCRIPTION OF ANY MATERIAL PATENTS, TRADEMARKS, LICENSES OR ROYALTY AGREEMENTS 68

NUMBER OF TOTAL EMPLOYEES AND NUMBER OF FULL-TIME EMPLOYEES 68

A BRIEF DESCRIPTION OF BUSINESS STRATEGY 68

A TABLE CONTAINING THE EXISTING INSTALLED CAPACITIES FOR EACH PRODUCT OR SERVICE, CAPACITY UTILIZATION FOR THESE PRODUCTS OR SERVICES IN THE PREVIOUS YEARS, PROJECTED CAPACITIES FOR EXISTING AS WELL AS PROPOSED PRODUCTS OR SERVICES AND THE ASSUMPTIONS FOR FUTURE CAPACITY UTILIZATION FOR THE NEXT THREE YEARS IN RESPECT OF EXISTING AS WELL AS PROPOSED PRODUCTS OR SERVICES. IF THE PROJECTED CAPACITY UTILIZATION IS HIGHER THAN THE ACTUAL AVERAGE CAPACITY UTILIZATION, RATIONALE TO ACHIEVE THE PROJECTED LEVELS

69

DESCRIPTION OF PROPERTY OF ISSUER 70

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LOCATION AND AREA OF THE LAND, BUILDING, PRINCIPAL PLANTS AND OTHER PROPERTY OF THE COMPANY AND THE CONDITION THEREOF

70

WHETHER THE PROPERTY IS OWNED BY THE COMPANY OR TAKEN ON LEASE 76

DATES OF PURCHASE, LAST PAYMENT DATE OF CURRENT RENT (LVRBV) AND MUTATION DATE OF LANDS, DEED VALUE AND OTHER COSTS INCLUDING DETAILS OF LAND DEVELOPMENT COST, IF ANY AND CURRENT USE THEREOF

76

THE NAMES OF THE PERSONS FROM WHOM THE LANDS HAS BEEN ACQUIRED/ PROPOSED TO BE ACQUIRED ALONG WITH THE COST OF ACQUISITION AND RELATION, IF ANY, OF SUCH PERSONS TO THE ISSUER OR ANY SPONSOR OR DIRECTOR THEREOF

86

DETAILS OF WHETHER THE ISSUER HAS RECEIVED ALL THE APPROVALS PERTAINING TO USE OF THE LAND, IF REQUIRED 89

IF THE PROPERTY IS OWNED BY THE ISSUER, WHETHER THERE IS A MORTGAGE OR OTHER TYPE OF CHARGE ON THE PROPERTY, WITH NAME OF THE MORTGAGEE

89

IF THE PROPERTY IS TAKEN ON LEASE, THE EXPIRATION DATES OF THE LEASE WITH NAME OF THE LESSOR, PRINCIPAL TERMS AND CONDITIONS OF THE LEASE AGREEMENTS AND DETAILS OF PAYMENT

90

DATES OF PURCHASE OF PLANT AND MACHINERIES ALONG WITH SELLERS NAME, ADDRESS, YEARS OF SALE, CONDITION WHEN PURCHASED, COUNTRY OF ORIGIN, USEFUL ECONOMIC LIFE AT PURCHASE AND REMAINING ECONOMIC LIFE, PURCHASE PRICE AND WRITTEN DOWN VALUE

90

DETAILS OF THE MACHINERIES REQUIRED TO BE BOUGHT BY THE ISSUER, COST OF THE MACHINERIES, NAME OF THE SUPPLIERS, DATE OF PLACEMENT OF ORDER AND THE DATE OR EXPECTED DATE OF SUPPLY, ETC

129

IN CASE THE MACHINERIES ARE YET TO BE DELIVERED, THE DATE OF QUOTATIONS RELIED UPON FOR THE COST ESTIMATES GIVEN SHALL ALSO BE MENTIONED

129

IF PLANT IS PURCHASED IN BRAND NEW CONDITION THEN IT SHOULD BE MENTIONED 129

DETAILS OF THE SECOND HAND OR RECONDITIONED MACHINERIES BOUGHT OR PROPOSED TO BE BOUGHT, IF ANY, INCLUDING THE AGE OF THE MACHINERIES, BALANCE ESTIMATED USEFUL LIFE, ETC. AS PER PSI CERTIFICATES OF THE SAID MACHINERIES AS SUBMITTED TO THE COMMISSION

129

A PHYSICAL VERIFICATION REPORT BY THE ISSUE MANAGER(S) REGARDING THE PROPERTIES AS SUBMITTED TO THE COMMISSION

129

IF THE ISSUER IS ENTITLED TO ANY INTELLECTUAL PROPERTY RIGHT OR INTANGIBLE ASSET, FULL DESCRIPTION OF THE PROPERTY, WHETHER THE SAME ARE LEGALLY HELD BY THE ISSUER AND WHETHER ALL FORMALITIES IN THIS REGARD HAVE BEEN COMPLIED WITH

135

FULL DESCRIPTION OF OTHER PROPERTIES OF THE ISSUER. 136

PLAN OF OPERATION AND DISCUSSION OF FINANCIAL CONDITION OF ISSUER 136

IF THE ISSUER HAD BEEN IN OPERATION, THE ISSUER’S REVENUE AND RESULTS FROM OPERATION, FINANCIAL POSITION AND CHANGES IN FINANCIAL POSITION AND CASH FLOWS FOR THE LAST FIVE YEARS OR FROM COMMERCIAL OPERATION, WHICH IS SHORTER, SHALL BE FURNISHED IN TABULAR FORM WHICH SHALL, AMONG OTHERS, INCLUDE THE FOLLOWING INFORMATION

136

INTERNAL AND EXTERNAL SOURCES OF CASH 137

ANY MATERIAL COMMITMENTS FOR CAPITAL EXPENDITURE AND EXPECTED SOURCES OF FUNDS FOR SUCH EXPENDITURE 137

CAUSES FOR ANY MATERIAL CHANGES FROM PERIOD TO PERIOD IN REVENUES, COST OF GOODS SOLD, OTHER OPERATING EXPENSES AND NET INCOM

137

ANY SEASONAL ASPECTS OF THE ISSUER’S BUSINESS 138

ANY KNOWN TRENDS, EVENTS OR UNCERTAINTIES THAT MAY HAVE MATERIAL EFFECT ON THE ISSUER’S FUTURE BUSINESS 138

ANY ASSETS OF THE COMPANY USED TO PAY OFF ANY LIABILITIES 138

ANY LOAN TAKEN FROM OR GIVEN TO ANY RELATED PARTY OR CONNECTED PERSON OF THE ISSUER WITH DETAILS OF THE 139

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SAME

ANY FUTURE CONTRACTUAL LIABILITIES THE ISSUER MAY ENTER INTO WITHIN NEXT ONE YEAR, AND THE IMPACT, IF ANY, ON THE FINANCIAL FUNDAMENTALS OF THE ISSUER

139

THE ESTIMATED AMOUNT, WHERE APPLICABLE, OF FUTURE CAPITAL EXPENDITURE 139

ANY VAT, INCOME TAX, CUSTOMS DUTY OR OTHER TAX LIABILITY WHICH IS YET TO BE PAID, INCLUDING ANY CONTINGENT LIABILITIES STATING WHY THE SAME WAS NOT PAID PRIOR TO THE ISSUANCE OF THE PROSPECTUS. UPDATED INCOME TAX STATUS FOR THE LAST 5 YEARS OR FROM COMMERCIAL OPERATION, WHICH IS SHORTER

139

ANY FINANCIAL COMMITMENT, INCLUDING LEASE COMMITMENT, THE COMPANY HAD ENTERED INTO DURING THE PAST FIVE YEARS OR FROM COMMERCIAL OPERATION, WHICH IS SHORTER, GIVING DETAILS AS TO HOW THE LIQUIDATION WAS OR IS TO BE EFFECTED

140

DETAILS OF ALL PERSONNEL RELATED SCHEMES FOR WHICH THE COMPANY HAS TO MAKE PROVISION FOR IN FUTURE YEARS

142

BREAK DOWN OF ALL EXPENSES RELATED TO THE PUBLIC ISSUE 143

IF THE ISSUER HAS REVALUED ANY OF ITS ASSETS, THE NAME, QUALIFICATION AND EXPERIENCES OF THE VALUER AND THE REASON FOR THE REVALUATION, SHOWING THE VALUE OF THE ASSETS PRIOR TO THE REVALUATION SEPARATELY FOR EACH ASSET REVALUED IN A MANNER WHICH SHALL FACILITATE COMPARISON BETWEEN THE HISTORICAL VALUE AND THE AMOUNT AFTER REVALUATION AND GIVING A SUMMARY OF THE VALUATION REPORT ALONG WITH BASIS OF PRICING AND CERTIFICATES REQUIRED UNDER THE REVALUATION GUIDELINE OF THE COMMISSION

144

WHERE THE ISSUER IS A HOLDING/SUBSIDIARY COMPANY, FULL DISCLOSURE ABOUT THE TRANSACTIONS, INCLUDING ITS NATURE AND AMOUNT, BETWEEN THE ISSUER AND ITS SUBSIDIARY/HOLDING COMPANY, INCLUDING TRANSACTIONS WHICH HAD TAKEN PLACE WITHIN THE LAST FIVE YEARS OF THE ISSUANCE OF THE PROSPECTUS OR SINCE THE DATE OF INCORPORATION OF THE ISSUER, WHICHEVER IS LATER, CLEARLY INDICATING WHETHER THE ISSUER IS A DEBTOR OR A CREDITOR

145

FINANCIAL INFORMATION OF GROUP COMPANIES AND COMPANIES UNDER COMMON OWNERSHIP BY MORE THAN 51%: FOLLOWING INFORMATION FOR THE LAST THREE YEARS BASED ON THE AUDITED FINANCIAL STATEMENTS, IN RESPECT OF ALL THE GROUP COMPANIES OF THE ISSUER, WHEREVER APPLICABLE, ALONG WITH SIGNIFICANT NOTES OF AUDITORS:

146

DATE OF INCORPORATION 146

NATURE OF BUSINESS 146

EQUITY CAPITAL 146

RESERVES 146

SALES 146

PROFIT AFTER TAX 146

EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE 146

NET ASSET VALUE 146

THE HIGHEST AND LOWEST MARKET PRICE OF SHARES DURING THE PRECEDING SIX MONTHS WITH DISCLOSURES FOR CHANGES IN CAPITAL STRUCTURE DURING THE PERIOD, IF ANY SECURITIES OF THE GROUP ARE LISTED WITH ANY EXCHANGE

146

INFORMATION REGARDING SIGNIFICANT ADVERSE FACTORS RELATING TO THE GROUP 146

ANY OF THE GROUP COMPANIES HAS BECOME SICK OR IS UNDER WINDING UP 146

THE RELATED BUSINESS TRANSACTIONS WITHIN THE GROUP AND THEIR SIGNIFICANCE ON THE FINANCIAL PERFORMANCE OF THE ISSUER

147

SALES OR PURCHASE BETWEEN GROUP COMPANIES/ SUBSIDIARIES/ ASSOCIATE COMPANIES WHEN SUCH SALES OR PURCHASES EXCEED IN VALUE IN THE AGGREGATE TEN PER CENT OF THE TOTAL SALES OR PURCHASES OF THE ISSUER AND ALSO MATERIAL ITEMS OF INCOME OR EXPENDITURE ARISING OUT OF SUCH TRANSACTIONS

148

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WHERE THE ISSUER IS A BANKING COMPANY, INSURANCE COMPANY, NON-BANKING FINANCIAL INSTITUTION OR ANY OTHER COMPANY WHICH IS REGULATED AND LICENSED BY ANOTHER PRIMARY REGULATOR, A DECLARATION BY THE BOARD OF DIRECTORS SHALL BE INCLUDED IN THE PROSPECTUS STATING THAT ALL REQUIREMENTS OF THE RELEVANT LAWS AND REGULATORY REQUIREMENTS OF ITS PRIMARY REGULATOR HAVE BEEN ADHERED TO BY THE ISSUER

148

A REPORT FROM THE AUDITORS REGARDING ANY ALLOTMENT OF SHARES TO ANY PERSON FOR ANY CONSIDERATION OTHERWISE THAN CASH ALONG WITH RELATIONSHIP OF THAT PERSON WITH THE ISSUER AND RATIONALE OF ISSUE PRICE OF THE SHARES

148

ANY MATERIAL INFORMATION, WHICH IS LIKELY TO HAVE AN IMPACT ON THE OFFERING OR CHANGE THE TERMS AND CONDITIONS UNDER WHICH THE OFFER HAS BEEN MADE TO THE PUBLIC

150

BUSINESS STRATEGIES AND FUTURE PLANS - PROJECTED FINANCIAL STATEMENTS SHALL BE REQUIRED ONLY FOR COMPANIES NOT STARTED COMMERCIAL OPERATION YET AND AUTHENTICATED BY CHAIRMAN, TWO DIRECTORS, MANAGING DIRECTOR, CFO, AND COMPANY SECRETARY

150

DISCUSSION ON THE RESULTS OF OPERATIONS SHALL INTER-ALIA CONTAIN THE FOLLOWING 150

A SUMMARY OF THE PAST FINANCIAL RESULTS AFTER ADJUSTMENTS AS GIVEN IN THE AUDITOR’S REPORT CONTAINING SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE

150

A SUMMARY OF MAJOR ITEMS OF INCOME AND EXPENDITURE 151

THE INCOME AND SALES ON ACCOUNT OF MAJOR PRODUCTS OR SERVICES 151

IN CASE, OTHER INCOME CONSTITUTES MORE THAN 10% OF THE TOTAL INCOME, THE BREAKUP OF THE SAME ALONG WITH THE NATURE OF THE INCOME, I.E., RECURRING OR NON-RECURRING

151

IF A MATERIAL PART OF THE INCOME IS DEPENDENT UPON A SINGLE CUSTOMER OR A FEW MAJOR CUSTOMERS, DISCLOSURE OF THIS FACT ALONG WITH RELEVANT DATA. SIMILARLY IF ANY FOREIGN CUSTOMER CONSTITUTES A SIGNIFICANT PORTION OF THE ISSUER’S BUSINESS, DISCLOSURE OF THE FACT ALONG WITH ITS IMPACT ON THE BUSINESS CONSIDERING EXCHANGE RATE FLUCTUATIONS

151

IN CASE THE ISSUER HAS FOLLOWED ANY UNORTHODOX PROCEDURE FOR RECORDING SALES AND REVENUES, ITS IMPACT SHALL BE ANALYZED AND DISCLOSED

151

COMPARISON OF RECENT FINANCIAL YEAR WITH THE PREVIOUS FINANCIAL YEARS ON THE MAJOR HEADS OF THE PROFIT AND LOSS STATEMENT, INCLUDING AN ANALYSIS OF REASONS FOR THE CHANGES IN SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE, INTER-ALIA, CONTAINING THE FOLLOWING

152

UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS INCLUDING UNUSUAL TRENDS ON ACCOUNT OF BUSINESS ACTIVITY, UNUSUAL ITEMS OF INCOME, CHANGE OF ACCOUNTING POLICIES AND DISCRETIONARY REDUCTION OF EXPENSES ETC

152

SIGNIFICANT ECONOMIC CHANGES THAT MATERIALLY AFFECT OR ARE LIKELY TO AFFECT INCOME FROM CONTINUING OPERATIONS

152

KNOWN TRENDS OR UNCERTAINTIES THAT HAVE HAD OR ARE EXPECTED TO HAVE A MATERIAL ADVERSE IMPACT ON SALES, REVENUE OR INCOME FROM CONTINUING OPERATIONS

152

FUTURE CHANGES IN RELATIONSHIP BETWEEN COSTS AND REVENUES, IN CASE OF EVENTS SUCH AS FUTURE INCREASE IN LABOR OR MATERIAL COSTS OR PRICES THAT WILL CAUSE A MATERIAL CHANGE ARE KNOWN

153

THE EXTENT TO WHICH MATERIAL INCREASES IN NET SALES OR REVENUE ARE DUE TO INCREASED SALES VOLUME, INTRODUCTION OF NEW PRODUCTS OR SERVICES OR INCREASED SALES PRICES

153

TOTAL TURNOVER OF EACH MAJOR INDUSTRY SEGMENT IN WHICH THE ISSUER OPERATED 153

STATUS OF ANY PUBLICLY ANNOUNCED NEW PRODUCTS OR BUSINESS SEGMENT 153

THE EXTENT TO WHICH THE BUSINESS IS SEASONAL 153

DEFAULTS OR RESCHEDULING OF BORROWINGS WITH FINANCIAL INSTITUTIONS OR BANKS, CONVERSION OF LOANS INTO EQUITY ALONG WITH REASONS THEREOF, LOCK OUT, STRIKES AND REASONS FOR THE SAME ETC. DURING THE HISTORY OF OPERATION OF THE COMPANY

153

DETAILS REGARDING THE CHANGES IN THE ACTIVITIES OF THE ISSUER DURING THE LAST FIVE YEARS WHICH MAY HAD A MATERIAL EFFECT ON THE PROFITS/LOSS, INCLUDING DISCONTINUANCE OF LINES OF BUSINESS, LOSS OF AGENCIES OR

154

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MARKETS AND SIMILAR FACTORS

INJUNCTION OR RESTRAINING ORDER, IF ANY, WITH POSSIBLE IMPLICATIONS 154

TECHNOLOGY, MARKET, MANAGERIAL COMPETENCE AND CAPACITY BUILT-UP 154

CHANGES IN ACCOUNTING POLICIES IN THE LAST THREE YEARS 155

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR: A STATEMENT BY THE DIRECTORS WHETHER IN THEIR OPINION THERE HAVE ARISEN ANY CIRCUMSTANCES SINCE THE DATE OF THE LAST FINANCIAL STATEMENTS AS DISCLOSED IN THE RED-HERRING PROSPECTUS/PROSPECTUS/INFORMATION MEMORANDUM AND WHICH MATERIALLY AND ADVERSELY AFFECT OR IS LIKELY TO AFFECT THE TRADING OR PROFITABILITY OF THE ISSUER, OR THE VALUE OF ITS ASSETS, OR ITS ABILITY TO PAY ITS LIABILITIES WITHIN THE NEXT TWELVE MONTHS

156

IF ANY QUARTER OF THE FINANCIAL YEAR OF THE ISSUER ENDS AFTER THE PERIOD ENDED IN THE AUDITED FINANCIAL STATEMENTS AS DISCLOSED IN THE PROSPECTUS OR INFORMATION MEMORANDUM, UNAUDITED FINANCIAL STATEMENTS FOR EACH OF THE SAID QUARTERS DULY AUTHENTICATED BY THE CEO AND CFO OF THE ISSUER OR INFORMATION MEMORANDUM, UNAUDITED FINANCIAL STATEMENTS FOR EACH OF THE SAID QUARTERS DULY AUTHENTICATED BY THE CEO AND CFO OF THE ISSUE

156

FACTORS THAT MAY AFFECT THE RESULTS OF OPERATIONS 156

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 157

OVERVIEW OF BUSINESS AND STRATEGIES 157

SWOT ANALYSIS 158

ANALYSIS OF THE FINANCIAL STATEMENTS OF LAST FIVE YEARS WITH REASON(S) OF FLUCTUATING REVENUE/SALES, OTHER INCOME, TOTAL INCOME, COST OF MATERIAL, FINANCE COST, DEPRECIATION AND AMORTIZATION EXPENSE, OTHER EXPENSE; CHANGES OF INVENTORIES, NET PROFIT BEFORE & AFTER TAX, EPS ETC.

159

KNOWN TRENDS DEMANDS, COMMITMENTS, EVENTS OR UNCERTAINTIES THAT ARE LIKELY TO HAVE AN EFFECT ON THE COMPANY’S BUSINESS

160

TRENDS OR EXPECTED FLUCTUATIONS IN LIQUIDITY 160

OFF-BALANCE SHEET ARRANGEMENTS THOSE HAVE OR LIKELY TO HAVE A CURRENT OR FUTURE EFFECT ON FINANCIAL CONDITION

160

DIRECTORS AND OFFICERS 161

NAME, FATHER’S NAME, AGE, RESIDENTIAL ADDRESS, EDUCATIONAL QUALIFICATION, EXPERIENCE AND POSITION OF EACH OF THE DIRECTORS OF THE COMPANY AND ANY PERSON NOMINATED/REPRESENTED TO BE A DIRECTOR, SHOWING THE PERIOD FOR WHICH THE OMINATION HAS BEEN MADE AND THE NAME OF THE ORGANIZATION WHICH HAS NOMINATED HIM;

161

THE DATE ON WHICH HE FIRST BECAME A DIRECTOR AND THE DATE ON WHICH HIS CURRENT TERM OF OFFICE SHALL EXPIRE

162

IF ANY DIRECTOR HAS ANY TYPE OF INTEREST IN OTHER BUSINESSES, NAMES AND TYPES OF BUSINESS OF SUCH ORGANIZATIONS. IF ANY DIRECTOR IS ALSO A DIRECTOR OF ANOTHER COMPANY OR OWNER OR PARTNER OF ANY OTHER CONCERN, THE NAMES OF SUCH ORGANIZATIONS

162

STATEMENT OF IF ANY OF THE DIRECTORS OF THE ISSUER ARE ASSOCIATED WITH THE SECURITIES MARKET IN ANY MANNER. IF ANY DIRECTOR OF THE ISSUER COMPANY IS ALSO A DIRECTOR OF ANY ISSUER OF OTHER LISTED SECURITIES DURING LAST THREE YEARS THEN DIVIDEND PAYMENT HISTORY AND MARKET PERFORMANCE OF THAT ISSUER

163

ANY FAMILY RELATIONSHIP (FATHER, MOTHER, SPOUSE, BROTHER, SISTER, SON, DAUGHTER, SPOUSE’S FATHER, SPOUSE’S MOTHER, SPOUSE’S BROTHER, SPOUSE’S SISTER) AMONG THE DIRECTORS AND TOP FIVE OFFICERS

164

A VERY BRIEF DESCRIPTION OF OTHER BUSINESSES OF THE DIRECTORS 164

SHORT BIO-DATA OF EACH DIRECTOR 167

LOAN STATUS OF THE ISSUER, ITS DIRECTORS AND SHAREHOLDERS WHO HOLD 10% OR MORE SHARES IN THE PAID-UP CAPITAL OF THE ISSUER IN TERMS OF THE CIB REPORT OF BANGLADESH BANK

169

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NAME WITH POSITION, EDUCATIONAL QUALIFICATION, AGE, DATE OF JOINING IN THE COMPANY, OVERALL EXPERIENCE (IN YEAR), PREVIOUS EMPLOYMENT, SALARY PAID FOR THE FINANCIAL YEAR OF THE CHIEF EXECUTIVE OFFICER, MANAGING DIRECTOR, CHIEF FINANCIAL OFFICER, COMPANY SECRETARY, ADVISERS, CONSULTANTS AND ALL DEPARTMENTAL HEADS. IF THE CHAIRMAN, ANY DIRECTOR OR ANY SHAREHOLDER RECEIVED ANY MONTHLY SALARY THAN THIS INFORMATION SHOULD ALSO BE INCLUDED

170

CHANGES IN THE KEY MANAGEMENT PERSONS DURING THE LAST THREE YEARS. ANY CHANGE OTHERWISE THAN BY WAY OF RETIREMENT IN THE NORMAL COURSE IN THE SENIOR KEY MANAGEMENT PERSONNEL PARTICULARLY IN CHARGE OF PRODUCTION, PLANNING, FINANCE AND MARKETING DURING THE LAST THREE YEARS PRIOR TO THE DATE OF FILING THE INFORMATION MEMORANDUM. IF THE TURNOVER OF KEY MANAGEMENT PERSONNEL IS HIGH COMPARED TO THE INDUSTRY, REASONS SHOULD BE DISCUSSED

170

A PROFILE OF THE SPONSORS INCLUDING THEIR NAMES, FATHER’S NAMES, AGE, PERSONAL ADDRESSES, EDUCATIONAL QUALIFICATIONS, AND EXPERIENCES IN THE BUSINESS, POSITIONS/POSTS HELD IN THE PAST, DIRECTORSHIP HELD, OTHER VENTURES OF EACH SPONSOR AND PRESENT POSITION

171

IF THE PRESENT DIRECTORS ARE NOT THE SPONSORS AND CONTROL OF THE ISSUER WAS ACQUIRED WITHIN FIVE YEARS IMMEDIATELY PRECEDING THE DATE OF FILING PROSPECTUS DETAILS REGARDING THE ACQUISITION OF CONTROL, DATE OF ACQUISITION, TERMS OF ACQUISITION, CONSIDERATION PAID FOR SUCH ACQUISITION ETC

172

IF THE SPONSORS/DIRECTORS DO NOT HAVE EXPERIENCE IN THE PROPOSED LINE OF BUSINESS, THE FACT EXPLAINING HOW THE PROPOSED ACTIVITIES WOULD BE CARRIED OUT/MANAGED

172

INTEREST OF THE KEY MANAGEMENT PERSONS 172

ALL INTERESTS AND FACILITIES ENJOYED BY A DIRECTOR, WHETHER PECUNIARY OR NON-PECUNIARY 173

NUMBER OF SHARES HELD AND PERCENTAGE OF SHAREHOLDING (PRE-ISSUE) 173

CHANGE IN BOARD OF DIRECTORS DURING LAST THREE YEARS 174

DIRECTOR’S ENGAGEMENT WITH SIMILAR BUSINESS 174

CERTAIN RELATIONSHIP AND RELATED TRANSACTIONS INCLUDED 175

THE PROSPECTUS SHALL CONTAIN A DESCRIPTION OF ANY TRANSACTION DURING THE LAST FIVE YEARS, OR ANY PROPOSED TRANSACTIONS CERTIFIED BY THE AUDITORS, BETWEEN THE ISSUER AND ANY OF THE FOLLOWING PERSONS, GIVING THE NAME OF THE PERSONS INVOLVED IN THE TRANSACTION, THEIR RELATIONSHIP WITH THE ISSUER, THE NATURE OF THEIR INTEREST IN THE TRANSACTION AND THE AMOUNT OF SUCH INTEREST,

175

ANY TRANSACTION OR ARRANGEMENT ENTERED INTO BY THE ISSUER OR ITS SUBSIDIARY OR ASSOCIATE OR ENTITY OWNED OR SIGNIFICANTLY INFLUENCED BY A PERSON WHO IS CURRENTLY A DIRECTOR OR IN ANY WAY CONNECTED WITH A DIRECTOR OF EITHER THE ISSUER COMPANY OR ANY OF ITS SUBSIDIARIES/HOLDING COMPANY OR ASSOCIATE CONCERNS, OR WHO WAS A DIRECTOR OR CONNECTED IN ANY WAY WITH A DIRECTOR AT ANY TIME DURING THE LAST THREE YEARS PRIOR TO THE ISSUANCE OF THE PROSPECTUS

183

ANY LOANS EITHER TAKEN OR GIVEN FROM OR TO ANY DIRECTOR OR ANY PERSON CONNECTED WITH THE DIRECTOR, CLEARLY SPECIFYING DETAILS OF SUCH LOAN IN THE PROSPECTUS, AND IF ANY LOAN HAS BEEN TAKEN FROM ANY SUCH PERSON WHO DID NOT HAVE ANY STAKE IN THE ISSUER, ITS HOLDING COMPANY OR ITS ASSOCIATE CONCERNS PRIOR TO SUCH LOAN, RATE OF INTEREST APPLICABLE, DATE OF LOAN TAKEN, DATE OF MATURITY OF LOAN, AND PRESENT OUTSTANDING OF SUCH LOAN

183

EXECUTIVE COMPENSATION 184

THE TOTAL AMOUNT OF REMUNERATION/SALARY/PERQUISITES PAID TO THE TOP FIVE SALARIED OFFICERS OF THE ISSUER IN THE LAST ACCOUNTING YEAR AND THE NAME AND DESIGNATION OF EACH SUCH OFFICER

184

AGGREGATE AMOUNT OF REMUNERATION PAID TO ALL DIRECTORS AND OFFICERS AS A GROUP DURING THE LAST ACCOUNTING YEAR

184

IF ANY SHAREHOLDER DIRECTOR RECEIVED ANY MONTHLY SALARY/PERQUISITE/BENEFIT IT MUST BE MENTIONED ALONG WITH DATE OF APPROVAL IN AGM/EGM, TERMS THEREOF AND PAYMENTS MADE DURING THE LAST ACCOUNTING YEAR

184

THE BOARD MEETING ATTENDANCE FEES RECEIVED BY THE DIRECTOR INCLUDING THE MANAGING DIRECTOR ALONG WITH DATE OF APPROVAL IN AGM/EGM

185

ANY CONTRACT WITH ANY DIRECTOR OR OFFICER PROVIDING FOR THE PAYMENT OF FUTURE COMPENSATION 185

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IF THE ISSUER INTENDS TO SUBSTANTIALLY INCREASE THE REMUNERATION PAID TO ITS DIRECTORS AND OFFICERS IN THE CURRENT YEAR, APPROPRIATE INFORMATION REGARDING THERETO

185

ANY OTHER BENEFIT/FACILITY PROVIDED TO THE ABOVE PERSONS DURING THE LAST ACCOUNTING YEAR 185

OPTION HELD BY EACH DIRECTOR, THE SALARIED OFFICERS, AND ALL OTHER OFFICERS 185

TRANSACTION WITH THE DIRECTORS AND SUBSCRIBERS TO THE MEMORANDUM 186

THE NAMES OF THE DIRECTORS AND SUBSCRIBERS TO THE MEMORANDUM, THE NATURE AND AMOUNT OF ANYTHING OF VALUE RECEIVED OR TO BE RECEIVED BY THE ISSUER FROM THE ABOVE PERSONS, OR BY THE SAID PERSONS, DIRECTLY OR INDIRECTLY, FROM THE ISSUER DURING THE LAST FIVE YEARS ALONG WITH THE DESCRIPTION OF ASSETS, SERVICES OR OTHER CONSIDERATION RECEIVED OR TO BE RECEIVED

186

IF ANY ASSETS WERE ACQUIRED OR TO BE ACQUIRED FROM WITHIN TWO FINANCIAL YEARS THE AFORESAID PERSONS, THE AMOUNT PAID FOR SUCH ASSETS AND THE METHOD USED TO DETERMINE THE PRICE SHALL BE MENTIONED IN THE PROSPECTUS, AND IF THE ASSETS WERE ACQUIRED BY THE SAID PERSONS WITHIN FIVE YEARS PRIOR TO TRANSFER THOSE TO THE ISSUER, THE ACQUISITION COST THEREOF PAID BY THEM

186

OWNERSHIP OF COMPANY’S SECURITIES FURNISHED 187

THE NAMES, ADDRESSES, BO ID NUMBER OF ALL SHAREHOLDERS OF THE COMPANY BEFORE IPO, INDICATING THE AMOUNT OF SECURITIES OWNED AND THE PERCENTAGE OF THE SECURITIES REPRESENTED BY SUCH OWNERSHIP, IN TABULAR FORM

187

THERE SHALL ALSO BE A TABLE SHOWING THE NAME AND ADDRESS, AGE, EXPERIENCE, BO ID NUMBER, TIN NUMBER, NUMBERS OF SHARES HELD INCLUDING PERCENTAGE, POSITION HELD IN OTHER COMPANIES OF ALL THE DIRECTORS BEFORE THE PUBLIC ISSUE

194

THE AVERAGE COST OF ACQUISITION OF EQUITY SHARES BY THE DIRECTORS CERTIFIED BY THE AUDITORS 196

A DETAIL DESCRIPTION OF CAPITAL BUILT UP IN RESPECT OF SHAREHOLDING (NAME-WISE) OF THE ISSUER’S SPONSORS/ DIRECTORS. IN THIS CONNECTION, A STATEMENT TO BE INCLUDED

196

DETAIL OF SHARES ISSUED BY THE COMPANY AT A PRICE LOWER THAN THE ISSUE PRICE 199

HISTORY OF SIGNIFICANT (5% OR MORE) CHANGES IN OWNERSHIP OF SECURITIES FROM INCEPTION 199

CORPORATE GOVERNANCE 200

A DISCLOSURE TO THE EFFECT THAT THE ISSUER HAS COMPLIED WITH THE REQUIREMENTS OF CORPORATE GOVERNANCE GUIDELINES OF THE COMMISSION

200

A COMPLIANCE REPORT OF CORPORATE GOVERNANCE REQUIREMENTS CERTIFIED BY COMPETENT AUTHORITY 200

DETAILS RELATING TO THE ISSUER'S AUDIT COMMITTEE AND REMUNERATION COMMITTEE, INCLUDING THE NAMES OF COMMITTEE MEMBERS AND A SUMMARY OF THE TERMS OF REFERENCE UNDER WHICH THE COMMITTEES OPERATE

212

VALUATION REPORT OF SECURITIES PREPARED BY THE ISSUE MANAGER 214

MATERIAL INFORMATION FURNISHED REGARDING DEBT SECURITIES ISSUED OR TO BE ISSUED 220

PARTIES INVOLVED AND THEIR RESPONSIBILITIES 220

ISSUE MANAGER(S) 220

UNDERWRITERS 220

AUDITORS 220

COST AND MANAGEMENT ACCOUNTANTS 220

VALUER 220

CREDIT RATING COMPANY 220

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DISCLOSURE REGARDING MATERIAL CONTRACTS 221

MAJOR AGREEMENTS ENTERED INTO BY THE ISSUER 221

MATERIAL PARTS OF THE AGREEMENTS 221

FEES PAYABLE TO DIFFERENT PARTIES 224

DISCLOSURE REGARDING LITIGATIONS, FINE OR PENALTY FURNISHED IN THE PROSPECTUS 225

RISK FACTORS AND MANAGEMENT’S PERCEPTION ABOUT THE RISKS 227

INTERNAL RISK FACTORS MAY INCLUDE, AMONG OTHERS 227

CREDIT RISK 227

LIQUIDITY RISK 227

RISK ASSOCIATED WITH THE ISSUER’S INTEREST IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE 227

SIGNIFICANT REVENUE GENERATED FROM LIMITED NUMBER OF CUSTOMERS, LOSING ANY ONE OR MORE OF WHICH WOULD HAVE A MATERIAL ADVERSE EFFECT ON THE ISSUER

228

DEPENDENCY ON A SINGLE OR FEW SUPPLIERS OF RAW MATERIALS, FAILURE OF WHICH MAY AFFECT PRODUCTION ADVERSELY

228

MORE THAN 20% REVENUE OF THE ISSUER COMES FROM SISTER CONCERN OR ASSOCIATE OR SUBSIDIARY 228

NEGATIVE EARNINGS, NEGATIVE CASH FLOWS FROM OPERATING ACTIVITIES, DECLINING TURNOVER OR PROFITABILITY, DURING LAST FIVE YEARS, IF ANY

228

LOSS MAKING ASSOCIATE/SUBSIDIARY/GROUP COMPANIES OF THE ISSUER 228

FINANCIAL WEAKNESS AND POOR PERFORMANCE OF THE ISSUER OR ANY OF ITS SUBSIDIARY OR ASSOCIATES 229

DECLINE IN VALUE OF ANY INVESTMENT 229

RISK ASSOCIATED WITH USEFUL ECONOMIC LIFE OF PLANT AND MACHINERY, IF PURCHASED IN SECOND HAND OR RECONDITIONED

229

ADVERSE EFFECT ON FUTURE CASH FLOW IF INTEREST FREE LOAN GIVEN TO RELATED PARTY OR SUCH LOANS TAKEN FROM DIRECTORS MAY RECALLED

229

POTENTIAL CONFLICT OF INTEREST, IF THE SPONSORS OR DIRECTORS OF THE ISSUER ARE INVOLVED WITH ONE OR MORE VENTURES WHICH ARE IN THE SAME LINE OF ACTIVITY OR BUSINESS AS THAT OF THE ISSUER AND IF ANY SUPPLIER OF RAW MATERIALS OR MAJOR CUSTOMER IS RELATED TO THE SAME SPONSORS OR DIRECTORS;

229

RELATED PARTY TRANSACTIONS ENTERED INTO BY THE COMPANY THOSE MAY ADVERSELY AFFECT COMPETITIVE EDGE 229

ANY RESTRICTIVE COVENANTS IN ANY SHAREHOLDERS' AGREEMENT, SPONSORS' AGREEMENT OR ANY AGREEMENT FOR DEBT OR PREFERENCE SHARES OR ANY RESTRICTIVE COVENANTS OF BANKS IN RESPECT OF THE LOAN/ CREDIT LIMIT AND OTHER BANKING FACILITIES

230

BUSINESS OPERATIONS MAY BE ADVERSELY AFFECTED BY STRIKES, WORK STOPPAGES OR INCREASE IN WAGE DEMANDS BY EMPLOYEES

230

SEASONALITY OF THE BUSINESS OF THE ISSUER 230

EXPIRY OF ANY REVENUE GENERATING CONTRACT THAT MAY ADVERSELY AFFECT THE BUSINESS 230

EXCESSIVE DEPENDENCE ON DEBT FINANCING WHICH MAY ADVERSELY AFFECT THE CASH FLOW 230

EXCESSIVE DEPENDENCE ON ANY KEY MANAGEMENT PERSONNEL ABSENCE OF WHOM MAY HAVE ADVERSE EFFECT ON THE ISSUER’S BUSINESS PERFORMANCE

230

ENFORCEMENT OF CONTINGENT LIABILITIES WHICH MAY ADVERSELY AFFECT FINANCIAL CONDITION 230

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INSURANCE COVERAGE NOT ADEQUATELY PROTECT AGAINST CERTAIN RISKS OF DAMAGES 231

ABSENCE OF ASSURANCE THAT DIRECTORS WILL CONTINUE ITS ENGAGEMENT WITH COMPANY AFTER EXPIRY OF LOCK IN PERIOD

231

ABILITY TO PAY ANY DIVIDENDS IN FUTURE WILL DEPEND UPON FUTURE EARNINGS, FINANCIAL CONDITION, CASH FLOWS, WORKING CAPITAL REQUIREMENTS AND CAPITAL EXPENDITURE

231

HISTORY OF NON OPERATION, IF ANY AND SHORT OPERATIONAL HISTORY OF THE ISSUER AND LACK OF ADEQUATE BACKGROUND AND EXPERIENCE OF THE SPONSORS

231

RISKS RELATED TO ENGAGEMENT IN NEW TYPE OF BUSINESS, IF ANY 231

RISK IN INVESTING THE SECURITIES BEING OFFERED WITH COMPARISON TO OTHER AVAILABLE INVESTMENT OPTIONS 231

ANY PENALTY OR ACTION TAKEN BY ANY REGULATORY AUTHORITIES FOR NON-COMPLIANCE WITH PROVISIONS OF ANY LAW

232

LITIGATIONS AGAINST THE ISSUER FOR TAX AND VAT RELATED MATTERS AND OTHER GOVERNMENT CLAIMS, ALONG WITH THE DISCLOSURES OF AMOUNT, PERIOD FOR WHICH SUCH DEMANDS OR CLAIMS ARE OUTSTANDING, FINANCIAL IMPLICATIONS AND THE STATUS OF THE CASE

232

REGISTERED OFFICE OR FACTORY BUILDING OR PLACE OF OPERATION IS NOT OWNED BY THE ISSUER 232

LACK OF RENEWAL OF EXISTING REGULATORY PERMISSIONS/ LICENSES 232

FAILURE IN HOLDING AGM OR DECLARING DIVIDEND OR PAYMENT OF INTEREST BY ANY LISTED SECURITIES OF THE ISSUER OR ANY OF ITS SUBSIDIARIES OR ASSOCIATES

232

ISSUANCES OF SECURITIES AT LOWER THAN THE IPO OFFER PRICE WITHIN ONE YEAR 232

REFUSAL OF APPLICATION FOR PUBLIC ISSUE OF ANY SECURITIES OF THE ISSUER OR ANY OF ITS SUBSIDIARIES OR ASSOCIATES AT ANY TIME BY THE COMMISSION

232

EXTERNAL RISK FACTORS MAY INCLUDE AMONG OTHERS 233

INTEREST RATE RISKS 233

EXCHANGE RATE RISKS 233

INDUSTRY RISKS 233

ECONOMIC AND POLITICAL RISKS 234

MARKET AND TECHNOLOGY-RELATED RISKS 234

POTENTIAL OR EXISTING GOVERNMENT REGULATIONS 235

POTENTIAL OR EXISTING CHANGES IN GLOBAL OR NATIONAL POLICIES 235

STATUTORY CLEARANCES AND APPROVALS THOSE ARE YET TO BE RECEIVED BY THE ISSUER 235

COMPETITIVE CONDITION OF THE BUSINESS 235

COMPLEMENTARY AND SUPPLEMENTARY PRODUCTS/SERVICES WHICH MAY HAVE AN IMPACT ON BUSINESS OF THE ISSUER.

235

OTHER RISK FACTORS 236

DESCRIPTION OF THE ISSUE 238

USE OF PROCEEDS 243

USE OF NET PROCEEDS OF THE OFFER INDICATING THE AMOUNT TO BE USED FOR EACH PURPOSE WITH HEAD-WISE BREAK-UP

243

UTILIZATION OF THE TOTAL AMOUNT OF PAID-UP CAPITAL AND SHARE PREMIUM, IF ANY, INCLUDING THE SPONSORS’ 246

Page | 17

CONTRIBUTION AND CAPITAL RAISED OF THE ISSUER AT THE TIME OF SUBMISSION OF PROSPECTUS, IN DETAILS WITH INDICATION OF USE OF SUCH FUNDS IN THE FINANCIAL STATEMENTS

IF ONE OF THE OBJECTS IS AN INVESTMENT IN A JOINT VENTURE, A SUBSIDIARY, AN ASSOCIATE OR ANY ACQUISITION, DETAILS OF THE FORM OF INVESTMENT, NATURE OF BENEFIT EXPECTED TO ACCRUE TO THE ISSUER AS A RESULT OF THE INVESTMENT, BRIEF DESCRIPTION OF BUSINESS AND FINANCIALS OF SUCH VENTURE

247

IF IPO PROCEEDS ARE NOT SUFFICIENT TO COMPLETE THE PROJECT, THEN SOURCE OF ADDITIONAL FUND MUST BE MENTIONED. IN THIS CONNECTION, COPIES OF CONTRACT TO MEET THE ADDITIONAL FUNDS ARE REQUIRED TO BE SUBMITTED TO THE COMMISSION. THE MEANS AND SOURCE OF FINANCING, INCLUDING DETAILS OF BRIDGE LOAN OR OTHER FINANCIAL ARRANGEMENT, WHICH MAY BE REPAID FROM THE PROCEEDS OF THE ISSUE ALONG WITH UTILIZATION OF SUCH FUNDS

247

A SCHEDULE MENTIONING THE STAGES OF IMPLEMENTATION AND UTILIZATION OF FUNDS RECEIVED THROUGH PUBLIC OFFER IN A TABULAR FORM, PROGRESS MADE SO FAR, GIVING DETAILS OF LAND ACQUISITION, CIVIL WORKS, INSTALLATION OF PLANT AND MACHINERY, THE APPROXIMATE DATE OF COMPLETION OF THE PROJECT AND THE PROJECTED DATE OF FULL COMMERCIAL OPERATION ETC. THE SCHEDULE SHALL BE SIGNED BY THE CHIEF EXECUTIVE OFFICER OR MANAGING DIRECTOR, CHIEF FINANCIAL OFFICER AND CHAIRMAN ON BEHALF OF BOARD OF DIRECTORS OF THE ISSUER

247

IF THERE ARE CONTRACTS COVERING ANY OF THE ACTIVITIES OF THE ISSUER FOR WHICH THE PROCEEDS OF SALE OF SECURITIES ARE TO BE USED, SUCH AS CONTRACTS FOR THE PURCHASE OF LAND OR CONTRACTS FOR THE CONSTRUCTION OF BUILDINGS, THE ISSUER SHALL DISCLOSE THE TERMS OF SUCH CONTRACTS, AND COPIES OF THE CONTRACTS SHALL BE ENCLOSED AS ANNEXURE TO THE PROSPECTUS

248

IF ONE OF THE OBJECTS OF THE ISSUE IS UTILIZATION OF THE ISSUE PROCEEDS FOR WORKING CAPITAL, BASIS OF ESTIMATION OF WORKING CAPITAL REQUIREMENT ALONG WITH THE RELEVANT ASSUMPTIONS, REASONS FOR RAISING ADDITIONAL WORKING CAPITAL SUBSTANTIATING THE SAME WITH RELEVANT FACTS AND FIGURES AND ALSO THE REASONS FOR FINANCING SHORT WITH LONG TERM INVESTMENTS AND AN ITEM WISE BREAK-UP OF LAST THREE YEARS WORKING CAPITAL AND NEXT TWO YEARS PROJECTION

248

WHERE THE ISSUER PROPOSES TO UNDERTAKE ONE OR MORE ACTIVITIES LIKE DIVERSIFICATION, MODERNIZATION, EXPANSION, ETC., THE TOTAL PROJECT COST ACTIVITY-WISE OR PROJECT WISE, AS THE CASE MAY BE

248

WHERE THE ISSUER IS IMPLEMENTING THE PROJECT IN A PHASED MANNER, THE COST OF EACH PHASE, INCLUDING THE PHASES, IF ANY, WHICH HAVE ALREADY BEEN IMPLEMENTED

248

THE DETAILS OF ALL EXISTING OR ANTICIPATED MATERIAL TRANSACTIONS IN RELATION TO UTILIZATION OF THE ISSUE PROCEEDS OR PROJECT COST WITH SPONSORS, DIRECTORS, KEY MANAGEMENT PERSONNEL, ASSOCIATES AND GROUP COMPANIES

248

SUMMARY OF THE PROJECT APPRAISAL OR FEASIBILITY REPORT BY THE RELEVANT PROFESSIONALS NOT CONNECTED WITH THE ISSUER, ISSUE MANAGER AND REGISTRAR TO THE ISSUE WITH COST OF THE PROJECT AND MEANS OF FINANCE, WEAKNESSES AND THREATS, IF ANY, AS GIVEN IN THE APPRAISAL OR FEASIBILITY REPORT

248

PROVISIONS FOR LOCK IN 253

STATEMENT REGARDING LOCK-IN ON EXISTING SHARES 253

INFORMATION REGARDING MARKETS FOR THE SECURITIES BEING OFFERED 257

DESCRIPTION OF SECURITIES OUTSTANDING OR BEING OFFERED 258

DIVIDEND, VOTING AND PREEMPTION RIGHTS 258

CONVERSION AND LIQUIDATION RIGHTS 258

DIVIDEND POLICY 259

OTHER RIGHTS OF THE SECURITIES HOLDERS 259

FINANCIAL STATEMENTS 260

INFORMATION AS IS REQUIRED UNDER SECTION 186 OF THE 1994 RELATING TO HOLDING COMPANY

INCLUDED 320

RATIOS ON LIQUIDITY, OPERATING PROFITABILITY, COVERAGE AND CASH FLOW OF THE ISSUER AS SPECIFIED IN ANNEXURE D INCLUDED

404

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COMPARATIVE INCOME STATEMENTS AND BALANCE SHEET AND AFOREMENTIONED RATIOS FOR IMMEDIATE PRECEDING 5 YEARS OR FOR THE PERIOD OF EXISTENCE OF THE COMPANY AS PER AUDITORS REPORT UNDER SECTION 135(1), PARA 24(1) OF PART II OF SCHEDULE III OF THE , 1994

415

FINANCIAL SPREAD SHEET ANALYSIS FOR THE LATEST AUDITED FINANCIAL STATEMENTS 420

EARNINGS PER SHARE (EPS) ON FULLY DILUTED BASIS (WITH THE TOTAL EXISTING NUMBER OF SHARES) IN ADDITION TO THE WEIGHTED AVERAGE NUMBER OF SHARES BASIS

422

THE INFORMATION REGARDING ALL EXTRA-ORDINARY INCOME OR NON-RECURRING INCOME COMING FROM OTHER THAN CORE OPERATIONS SHOULD BE SHOWN SEPARATELY WHILE SHOWING THE NET PROFIT AS WELL AS THE EARNINGS PER SHARE INCLUDED

422

QUARTERLY OR HALF YEARLY EPS SHOULD NOT BE ANNUALIZED WHILE CALCULATING THE EPS FOR THE PURPOSE OF PRESENTING IN THE RED-HERRING PROSPECTUS /PROSPECTUS/ INFORMATION MEMORANDUM

422

NET ASSET VALUE (WITH AND WITHOUT CONSIDERING REVALUATION SURPLUS/RESERVE) PER UNIT OF THE SECURITIES BEING OFFERED AT THE DATE OF THE LATEST AUDITED STATEMENT OF FINANCIAL POSITIOn

422

STATEMENTS FOR THE LAST FIVE YEARS OR ANY SHORTER PERIOD OF COMMERCIAL OPERATION CERTIFIED BY THE AUDITORS:-

424

STATEMENT OF LONG TERM AND SHORT TERM BORROWINGS INCLUDING BORROWING FROM RELATED PARTY OR CONNECTED PERSONS WITH RATE OF INTEREST AND INTEREST PAID/ACCRUED

424

STATEMENT OF PRINCIPAL TERMS OF SECURED LOANS AND ASSETS ON WHICH CHARGE HAVE BEEN CREATED AGAINST THOSE LOANS WITH NAMES OF LENDERS, PURPOSE, SANCTIONED AMOUNT, RATE OF INTEREST, PRIMARY SECURITY, COLLATERAL/OTHER SECURITY, RE-PAYMENT SCHEDULE AND STATUS

427

STATEMENT OF UNSECURED LOANS WITH TERMS & CONDITIONS 434

STATEMENT OF INVENTORIES SHOWING AMOUNT OF RAW MATERIAL, PACKING MATERIAL, STOCK-IN-PROCESS AND FINISHED GOODS, CONSUMABLE ITEMS, STORE & SPARES PARTS, INVENTORY OF TRADING GOODS ETC.

435

STATEMENT OF TRADE RECEIVABLES SHOWING RECEIVABLE FROM RELATED PARTY AND CONNECTED PERSONS 436

STATEMENT OF ANY LOAN GIVEN BY THE ISSUER INCLUDING LOANS TO RELATED PARTY OR CONNECTED PERSONS WITH RATE OF INTEREST AND INTEREST REALIZED/ACCRUED

437

STATEMENT OF OTHER INCOME SHOWING INTEREST INCOME, DIVIDEND INCOME, DISCOUNT RECEIVED, OTHER NON OPERATING INCOME

440

STATEMENT OF TURNOVER SHOWING SEPARATELY IN CASH AND THROUGH BANKING CHANNEL 441

STATEMENT OF RELATED PARTY TRANSACTION 442

RECONCILIATION OF BUSINESS INCOME SHOWN IN TAX RETURN WITH NET INCOME SHOWN IN AUDITED FINANCIAL STATEMENTS

449

CONFIRMATION THAT ALL RECEIPTS AND PAYMENTS OF THE ISSUER ABOVE TK.5,00,000/- (FIVE LAC) WERE MADE THROUGH BANKING CHANNEL

449

CONFIRMATION THAT BANK STATEMENTS OF THE ISSUER ARE IN CONFORMITY WITH ITS BOOKS OF ACCOUNTS; 449

STATEMENT OF PAYMENT STATUS OF TAX, VAT AND OTHER TAXES/DUTIES 450

AUDITORS DISCLOSURE 451

MANAGEMENT DISCLOSURE 470

CREDIT RATING REPORT 479

PUBLIC ISSUE APPLICATION PROCEDURE INCLUDED 506

UN-AUDITED FINANCIAL STATEMETN FOR THE PERIOD ENDED MARCH 31, 2020 511

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EXECUTIVE SUMMERY SECTION I (a) ABOUT THE INDUSTRY Historically, power generation in Bangladesh heavily dependent on natural gas from local extraction. Moreover import of capital machineries and subsidized petroleum negatively impact on the foreign exchange. Power and Energy Sector Development Roadmap (2010-2021) target to produce 20,000 MW by 2021. However, to ensure overall and balanced development of this sector, the GOB has undertaken various plans including balanced development in generation, transmission and the distribution system to achieve a desired level of reliability of supply towards reaching the per capita consumption to 600 Kw. The above scenario suggests growth potential for EPGL in the segment of power equipment and boiler trading business of the company. Data Sources: http://www.bpdb.gov.bd

Present Installed Generation Capacity (MW) as on June 2019

Public Sector Installed Capacity Private Sector Installed Capacity

BPDB 5,498 IPP/SIPP 6,503

APSCL 1,444 (REB) 251

EGCB 839 Rental 1,540

NWPGCL 1,395 Power Import 1,160

RPCL 182 Subtotal 9,454 (49.86%)

BPDB-RPCL JV 149

Subtotal 9,507 (50.14%)

Total Generation Capacity as on June, 2019=18,961

* Including Captive Power Total Installed Capacity (13,561 + 2,200) = 15,761 MW Automotive industry in Bangladesh is largely dominated by importing reconditioned and new vehicles mostly from Asian countries like Japan, China, India and few from Europe and USA. However, different private endeavor grabs distributorship of different vehicle brands. From the statistics it is identified that the country has around 20 companies that sell around 10,000 unit buses and commercial Vehicles a year, and the market is growing by 10-15 percent annually. Data Sources: https://www.export.gov/article?id=Bangladesh-Power-and-energy A rapid growth of the consumption of Liquefied Petroleum Gas (LPG) in Bangladesh has been observed over the last few years as households, commercial entities and vehicles being the major drivers. In 2015, LPG consumption in Bangladesh was only 250,000 metric ton (MT) which reached at 800,000 MT in 2019. Bangladesh’s existing LPG demand is estimated at around 2 million MT per year, with half of it is currently being met by kerosene and wood due to deficiency of LPG. The natural gas reserves of Bangladesh is 11.47 trillion cubic feet (TCF) as of January 2019, which can roughly meet the demand till 2025. With 23 operational gas fields, the country produces about 2,700 million cubic feet gas per day (mmcfd) against a steady demand of 3,700 mmcfd, leaving a shortage of 1,000 mmcfd as of 2018. Data Sources: Power Division of Government of Bangladesh, Japan International Cooperation Agency and Petrobangla According to World LPG Association (WLPGA), Bangladesh is going to be one of the fastest-growing LPG market across the world and estimated demand for the fuel might reach up to 3.0 million MT by 2025. Since the industry is largely import dominated and 98% of the bulk demand is imported, the import forecast can give an impression about the growth of the LPG market in the coming years.

Year Projected LPG import (in million MT)

2020 1.20

2021 1.40

2022 1.65

2023 1.80

2024 2.25

2025 2.70

Data Sources: https://databd.co/profiles/industries/profile-lp-gas

http://www.bpdb.gov.bd/https://www.export.gov/article?id=Bangladesh-Power-and-energy

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(b) ABOUT THE ISSUER Energypac Power Generation Ltd. (EPGL) was incorporated as private limited company on July 15, 1995 vide registration number C-28822 (103)/95 under the Companies Act 1994. Subsequently, the company converted to a public limited company on December 27, 2011. Energypac has become one of the leading Power Engineering Companies in Bangladesh. In its continuous effort for comprehensive solution EPGL receive ISO 9001:2008 certifications. The date of commercial operation is July 15, 1995. EPGL has its registered office at 79, Shahid Tajuddin Ahmed Sharani, Tejgaon I/A, Dhaka 1208. The corporate office of the company situated at Energy Center, 25 Tejgaon I/A, Tejgaon, Dhaka- 1208. Also the Company has several establishment across the country for uninterrupted smooth operation. The Company is engaged as major supplier of base load and standby gas and diesel generators and provides rent, solar panel, accessories and turnkey solutions, independent power plant, operation and maintenance of power plant, transmission and distribution, CNG refueling station and conversion kits, importing and marketing JAC automobiles, machinery and materials, spare parts, installation and service in Bangladesh and overseas. EPGL has achieved a new milestone this year in its business arena by adding Steelpac brand to provide designing, manufacturing and erecting of pre-engineered steel buildings, aiming to provide complete steel constructions to industrial, commercial and residential steel buildings. In addition of that, EPGL has successfully entered in LPG market branding as G-GAS. The LPG bottling & distribution plant is located near Mongla sea port. SUBSIDIARY COMPANY 1. Energypac Power Venture Limited is a Subsidiary Company which has set up a power plant at Hobigonj of 11 MW

production capacity located in Sylhet, Bangladesh. The company has a 15 year power purchase agreement with Rural Electrification Board (REB), Bangladesh. The project started commencement in January, 2009.

2. EPV Chittagong Limited is another power venture which has a power plant at Chittagong of 108 MW production

capacity as an Independent Power Producer (IPP). The company has a 15 year power purchase agreement with Bangladesh Power Development Board (BPDB). The project started commencement in January, 2015.

3. EPV Thakurgaon Limited (sub-subsidiary of EPGL) has a power plant at Thakurgaon of 115MW production capacity as

an IPP (Independent Power Producer) (Under Construction). The company has a 15 year power purchase agreement with Bangladesh Power Development Board (BPDB). The Company will delivere the entire output of electricity to Bangladesh Power Development Board (BPDB) as per a power purchase agreement dated upon commercial operation.

(c) FINANCIAL INFORMATION (CONSOLIDATED)

Particulars 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015

Revenues 14,398,996,009 12,444,362,651 4,545,749,964 3,480,069,130 3,132,949,407

Gross Profit 3,312,621,645 2,472,220,847 1,039,009,582 908,109,603 961,642,802

Net Profit Before Tax 627,458,227 609,094,193 426,344,548 196,861,543 378,070,133

Net Profit after Tax 479,932,737 453,507,602 304,561,180 150,092,873 268,608,842

Total Assets 32,036,586,830 29,969,044,026 21,882,536,181 8,935,560,085 8,610,967,216

Paid-up Capital 1,498,696,500 1,498,696,500 1,498,696,500 1,498,696,500 1,498,696,500

Retained Earnings 2,096,003,177 1,420,304,706 1,190,133,594 976,803,873 954,212,818

No. of Shares 149,869,650 149,869,650 149,869,650 149,869,650 149,869,650

Face Value 10 10 10 10 10

NAV per share 45.15 40.65 37.30 31.71 31.92

Earnings per Share 3.13 2.92 2.03 1.00 1.79

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(d) FEATURES OF THE ISSUE AND ITS OBJECTS

Cut-Off Price BDT 35.00

Public Offering Price BDT 31.00

Number of Shares to be Offered 40,293,566

Total Issue Size BDT 1500,000,000

Issue Manager LankaBangla Investments Limited

Register to the Issue ICB Capital Management Limited

Objectives of the Issue Procurement of LPG Carrier & Accessories, Import of LPG Cylinders, Procurement of Material for LPG Cylinders and Loan Repayment

(e) LEGAL AND OTHER INFORMATION

Particular Issue Date

Certificate of Incorporation July 15, 1995

Conversion of Private to Public Limited Company December 27, 2011

Conversion of Denomination of Face Value of Shares December 27, 2011

Date of Commercial Operation July 15, 1995

(f) PROMOTERS’ BACKGROUND When the company was incorporated, following persons were the subscriber to the memorandum:

SL. Name

1 Mr. Rabiul Alam

2 Mr. Enamul Haque Chowdhury

3 Mr. Humayun Rashid

Mr. Rabiul Alam Mr. Rabiul Alam has graduated in Electrical Engineering from BUET in 1984. He is a dynamic professional businessperson with more than 33 years of experience in business. By dint of his leadership, EPGL achieved a massive expansion– both vertically and horizontally. A number of companies have been set up during the process, and all of those are successfully running. He has successfully completed a number of training from reknowned international institutions. He received certification on High Voltage Testing and Insulating Materials from Roorkee University, India. He also completed a training course on Industrial Engineering which is organized by Asian Productivity Organization, Japan. Currently, he is the Chairman of Energypac Power Generation Limited. He is also the Managing Director of Energypac Agro Limited, Energypac Sea Food Limited, Energypac Electronics Limited, Energypac Power Systems Limited and Energypac Infrastructure & Development Limited. In addition of that, he hold the post of Director of Energypac Engineering Limited, Tec Advantage Limited, Energypac Fashion Limited, Energypac Batteries Limited, Sonargaon Leather & Rexin Cloth Industries Limited and Chartered Life Insurance Company Limited. Mr. Humayun Rashid Humayun Rashid is the Managing Director & Chief Executive Officer (CEO) of Energypac Power Generation Limited. Under the leadership of Mr. Rashid the company remarked as a power engineering company of Bangladesh. He earned his Bachelor Degree from University of Dhaka in the year 1982. Also attended training programs on Entrepreneurship, Leadership, Retail Product Marketing, Occupational Hazard and Safety both at home and abroad like AOTS- Japan and IIM- India. His 32 Years of experience in Business of Manufacturing and Distribution of different types of Transformers, Electrical T & D Products, EPGL established itself as a major Power and Energy solution provider. He was the Senior Vice President of Dhaka Chamber of Commerce and Industries. He is the immediate Past President of France-Bangladesh Chamber of Commerce & Industries, Current Vice President of International Business Forum of Bangladesh. He is also member of some renowned social organization like Army Golf Club, Chittagong Boat Club, Dhaka Boat Club and Gulshan Club. He is the Past President of Rotary Club of Dhaka North.

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Mr. Humayun Rashid is also the Founder Director of Energypac Engineering Limited, Energypac Transformer Limited, Energypac Fashion Limited, Energypac Electronic Limited, Energypac Agro Limited, Energypac Infrastructure & Development Limited, Energypac Batteries Limited, Energypac Sea Food Limited, and EPV Chittagong Limited. Mr. Enamul Haque Chowdhury Mr. Enamul Haque Chowdhury, one of the Founder Director of Energypac, has a long carrier in developing and established diversified business and project that includes power generation, engineering financial institutions, garments etc. Over the period he has earned a rich in-depth understanding on corporate management, financial management, Human resource management and know how the state of -the - art technology to operate a large group of companies. He is Managing Director of Energypac Engineering Limited, one of the largest private sector company, engaged in manufacturing international quality electrical substation and power generation equipment in Bangladesh. He is also associated with agro based business. He is the Managing Director of Energypac Fashion Limited. He is also the Director of Energypac Agro Limited, Tec Advantage Limited, Energypac Transformer Limited, Energypac Infrastructure & Development Limited, Energypac Batteries Limited, Energypac Power Systems Limited. Mr. Chowdhury is a valiant freedom fighter. Academically Mr. Chowdhury maintained a very successful profile. After completion of his higher secondary studies in Dhaka College, he got himself admitted in the University of Dhaka in the year 1970. He has completed bachelor and masters' degree in economics securing admiring results. He is a Senate Member of Dhaka University from 2009 to till today. (g) CAPITAL STRUCTURE AND HISTORY OF CAPITAL RAISING

Particulars No. of Ordinary Shares Nominal price Amount (BDT)

Before IPO:

Authorized Capital 500,000,000 10/- 5,000,000,000

Issued, Subscribed and Paid up capital 149,869,650 10/- 1,498,696,500

Total paid up capital before IPO (A) * 149,869,650 10/- 1,498,696,500

After IPO:

To be issued as IPO (B) 40,293,566 10/- 402,935,660

Paid up capital (Post IPO) (A+B) 190,163,216 10/- 1,901,632,160

*The Company has raised its paid-up capital in following phases:

Date of Allotment Nominal

Price Issue Price

Number of Shares Issued Amount of

Share Capital (BDT)

In cash Other

than in cash

Bonus Share

10 July 1995: First Allotment (Subscription to the Memorandum & Articles of Association at the time of Incorporation)

10/- 10/- 60,000 - 600,000

1 July 2001: Second Allotment 10/- 10/- 140,000 - 1,400,000

19 May 2011: Third Allotment 10/- 10/- - 9,500,000 95,000,000

26 August 2012: Fourth Allotment

10/- 10/- - 46,560,000 465,600,000

19 December 2012: Fifth Allotment

10/- 10/- - 59,073,000 590,730,000

1 October 2013: Sixth Allotment 10/- 44/- 27,400,000 - 274,000,000

16 October 2014: Seventh Allotment

10/- 10/- - 7,136,650 71,366,500

Total 1,498,696,500

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(h) SUMMARY OF VALUATION REPORT OF SECURITIES

Sl. No. Valuation Methods Fair Value (BDT)

Method-1(A) Net Asset value (NAV) per share (with Revaluation) 45.15

Method-1(B) Net Asset value (NAV) per share (without Revaluation) 30.20

Method-2(A) Earning-based value per share (Considering Avg. Sector P/E) 25.92

Method-2(B) Earning-based value per share (Considering Avg. Market P/E) 26.99

Method-3 Average Market Price of Similar Stocks Based Valuation 36.86

The detailed valuation workings of the above-mentioned methods are furnished under the head of “Valuation Report of securities prepared by the Issue Manager” in this Prospectus. (i) Others DECLARATION REGARDING ANY MATERIAL CHANGE INCLUDING RAISING OF PAID-UP CAPITAL AFTER THE DATE OF AUDITED FINANCIAL STATEMENTS AS INCLUDED IN THE PROSPECTUS This is to declare that, to the best of our knowledge and belief, there is no material change including Raising of Paid-Up Capital after the date of Audited Financial Statements i.e. June 30, 2019 as incorporated in the Prospectus. For Energypac Power Generation Limited Sd/- Humayun Rashid Managing Director Date Dhaka October 01, 2020 DECLARATION OF LANKABANGLA INVESTMENTS LIMITED REGARDING ISSUE MANAGER OR ANY OF ITS CONNECTED PERSONS HOLDING OF ANY SECURITIES OF ENERGYPAC POWER GENERATION LIMITED This is to declare that, LankaBangla Investments Limited or any of its connected persons is no way connected with Energypac Power Generation Limited or any of its connected person nor does hold any securities. For LankaBangla Investments Limited Sd/- Iftekhar Alam Chief Executive Officer Date Dhaka October 01, 2020

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CONDITIONS IMPOSED BY THE COMMISSION SECTION: II DISCLOSURE IN RESPECT OF ISSUANCE OF SECURITY IN DEMAT FORM: As per provisions of the Depository Act, 1999 and regulations made thereunder, the shares of the Company will be issued in dematerialized form only and for this purpose, Energypac Power Generation Limited will sign an agreement with the Central Depository Bangladesh Limited (CDBL). Therefore, all transfers, transmissions, splitting or conversions will take place on the CDBL system and any further issuance of shares (including rights and bonus) will also be issued in dematerialized form only.

CONDITIONS UNDER 2CC OF THE SECURITIES AND EXCHANGE ORDINANCE, 1969 PART-A

1. The Company shall go for Initial Public Offer (IPO) for 40,293,566 ordinary shares, from which 20,146,766 ordinary shares are reserved for Eligible Investors (EIs) at their own bid price and quantity on highest to lowest bid basis in a descending order of individual bid price till exhaustion of the quota for EI category and remaining 20,146,800 ordinary shares at a 10% discounted price from the cut-off price i.e Tk. 31.00 per share for General Public including NRBs totaling Tk. 1,500,000,000 following the Securities and Exchange Ordinance, 1969, the Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015, the Depository Act 1999 and rules made there under.

2. The abridged version of the prospectus, as approved by the Commission, shall be published by the issuer in 4 (Four) national daily newspapers (two in Bangla and two in English), within 02 (two) working days of issuance of this consent letter. The issuer shall post the full prospectus, vetted by Commission, in the issuer’s website and shall also put on the websites of the Commission, stock exchanges, and the issue manager, within 03 (three) working days from the date of issuance of this letter and shall remain posted till the closure of the subscription list. The issuer shall submit to the Commission, the stock exchanges and the issue manager a diskette containing the text of the vetted prospectus in “MS- Word” format.

3. The company shall submit 40 (Forty) copies of the printed prospectus to the Commission for official record within 05 (Five) working days from the date of publication of the abridged version of the prospectus in the newspaper.

4. The issuer company and the issue manager shall ensure the transmission of the prospectus and its abridged version for NRBs through email to the Bangladesh Embassies and Missions abroad within 05 (Five) working days from the date of publication of the abridged version of the prospectus in the newspaper. A compliance report shall be submitted in this respect to the Commission jointly by the Issuer and the Issue Manager within 02 (Two) working days from the date of said transmission of the prospectus.

5. The following declaration shall be made by the company in the prospectus, namely: -

“DECLARATION ABOUT LISTING OF SHARES WITH THE STOCK EXCHANGE (S):

None of the stock exchange(s), if for any reason, grants listing within 30 (Thirty) days from the closure of subscription, any allotment in terms of this prospectus shall be void and the company shall refund the subscription money within 15 (Fifteen) days from the date of refusal for listing by the stock exchanges or from the date of expiry of the said 30 (Thirty) days, as the case may be.

In case of non-refund of the subscription money within the aforesaid 15 (Fifteen) days, the Directors of the company, in addition to the issuer company, shall be collectively and severally liable for refund of the subscription money, with interest at the rate of 2% (two percent) above the bank rate, to the subscribers concerned.

The issue manager, in addition to the Issuer company, shall ensure due to compliance of the above-mentioned conditions and shall submit compliance report thereon to the Commission within 07 (Seven) days of the expiry of the aforesaid 15 (Fifteen) days’ time period allowed for refund of the subscription money.”

6. All applicants shall apply for a minimum lot of 200 shares worth Taka 6,200/- (Taka six thousand and two hundred only) or its multiples.

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7. The IPO shall stand canceled in case of under- subscription in any category above 35%. In such an event, the issuer and issue manager shall inform the Commission within 2 (two) working days and release the subscription money within 10 (ten) working days after receiving verification report from CDBL and the information from exchanges regarding subscription.

8. 20% of the securities reserved for other general public excluding NRB shall be reserved for . In case

of under-subscription under any of sub-categories of General Public category, the unsubscribed portion shall be added to other sub-category of General Public category. In case of over subscription in the general public category, the issuer and the issue manager shall jointly conduct an open lottery.undersubscribed portion shall be added to other sub-category of the same category.

9. An applicant cannot submit more than two applications, one in his/her own name and the other jointly with another person. In case, an applicant submits more than two applications, all applications will be treated as invalid and will not be considered for allotment purpose. In addition, 15% (fifteen) of the application money will be forfeited by the Commission and the balance amount will be refunded to the applicant.

10. The applicants who have applied for more than two applications using the same bank account, their application will not be considered for the lottery and the Commission will forfeit 15% of their subscription money.

11. Making of any false statement in the application or supplying of incorrect information therein or suppressing any relevant information in the application shall make the application liable to rejection and subject to forfeiture of 25% of the application money and/or forfeiture of share (unit) before or after issuance of the same by the issuer. The said forfeited application money or share (unit) will be deposited in the account of the Bangladesh Securities and Exchange Commission (BSEC). This is in addition to any other penalties as may be provided for by the law.

12. The company shall furnish the list of allottees to the Commission and the stock exchange(s) simultaneously in which the shares will be listed, within 24 (Twenty-Four) hours of allotment.

13. Shares not allotted at the time of according this consent, but allotted after listing, in favor of sponsors, directors or shareholders having 10% or more shares, other than alternative investment funds, through stock dividends, shall be subject to a lock-in period of 02(two) years from the date of issuance of the prospectus.

14. If any share of Sponsors/Directors/Promoters is in paper format, it shall be handed over to securities custodian registered with the Commission and shall remain held till completion of lock-in period and the name of the securities custodian shall be furnished to the Commission jointly by the issuer and issue manager, along with a confirmation thereof from the custodian, within one week of listing of the shares with the stock exchange(s). Or they (shares of Sponsors/ Directors/ Promoters) can be demated and shall remain in lock-in under CDBL system and issuer shall submit a dematerialization confirmation report generated by CDBL and attested by Managing Director of the company along with the lock-in confirmation to the Commission within one week of listing of the shares with the stock exchange(s). In respect of shares other than Sponsors/Directors/Promoters, the issuer will ensure their lock-in of those shares and submit a statement to this effect to the Commission.

15. The company shall not declare any dividend/bonus shares before listing of its capital with any Exchange from the date of this consent for raising capital.

16. The company shall not engage itself into any merger/amalgamation or acquisition activities without taking “No Objection” from the Commission, on the scheme of the said merger/amalgamation or acquisition, as recommended by the Board of Directors, before approval by the shareholders in General Meeting.

17. The trading of Securities in the platform of the exchanges shall be started within 10(ten) working days of listing approval.

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Step-1 (Applicant)

PART–B Application Process

1. An applicant for public issue of securities shall submit an application/buy instruction to the Stockbroker/ Merchant Banker where the applicant maintains customer account, within the cut-off date (i.e. the subscription closing date),

which shall be the 25th (twenty-fifth) working day from the date of publication of an abridged version of the prospectus.

2. The application/buy instruction may be submitted in prescribed paper or electronic form, which shall contain the Customer ID, Name, BO Account Number, Number of Securities applied for, Total Amount and Category of the Applicant. At the same time:

a) Non-resident Bangladeshi (NRB) and Foreign applicants shall submit bank drafts (FDD), issued in favor of the Issuer for an amount equivalent to the application money, with their application to the concerned Stockbroker/Merchant Banker. A Non-resident Bangladeshi (NRB) and the Foreign applicant may also submit a single draft against 02(two) applications made by him/her, i.e. one in his/her own name and the other jointly with another person. The draft (FDD) shall be issued by the Bank where the applicant maintains Foreign Currency account debiting the same account and provide the customer with a certificate mentioning the FC account number which has been debited to issue the FDD. The applicant shall also submit the certificate with their application. No banker shall issue more than two drafts from any Foreign Currency account for any public issue. At the same time, the applicant shall make the service charge available in the respective customer account maintained with the Stockbroker/Merchant Banker.

b) Eligible investors shall submit an application through the electronic subscription system of the exchange(s) and deposit the full amount intended to subscribe by the method as determined by exchange(s).

Step-2 (Intermediary) 3. The Stockbroker/Merchant Banker shall maintain a separate bank account only for this purpose namely “Public

Issue Application Account”. The Stockbroker/Merchant Banker shall:

a) Post the amount separately in the customer account (other than NRB and Foreign applicants), and upon the availability of fund, block the amount equivalent to the application money;

b) Accumulate all the application/buy instructions received up to the cut-off date, deposit the amount in the “Public Issue Application Account” maintained with its bank within the first banking hour of next working day of the cut-off date;

c) Instruct the banker to block the account for an amount equivalent to the aggregate application money and to issue a certificate in this regard.

4. Banker of the Stockbroker/Merchant Banker shall block the account as requested for, issue a certificate confirming the same and handover it to the respective Stockbroker/Merchant Banker.

5. For Non-resident Bangladeshi (NRB) and Foreign applicants, the Stockbroker/Merchant Banker shall prepare a list containing the draft information against the respective applicant’s particulars.

6. The Stockbroker/Merchant Banker shall prepare category wise lists of the applicants containing Customer ID,

Name, BO Account Number and Number of Securities applied for, and within 03 (three) working days from the cut-off date, send to the respective Exchange, the lists of applicants in electronic (text format with tilde ‘~’ separator) format, the certificate(s) issued by its banker, the drafts and certificates received from Non-resident Bangladeshi (NRB) and foreign applicants and a copy of the list containing the draft information.

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7. On the next working day, the Exchanges shall provide the Issuer with the information received from the Stockbroker/ Merchant Bankers, the drafts and certificates submitted by Non-resident Bangladeshi (NRB) and Foreign applicants and the list containing the draft information. Exchanges shall verify and preserve the bankers’ certificates in their custody.

8. The application/buy instructions shall be preserved by the Stockbroker/Merchant Bankers up to 6 months from listing of the securities with the exchange.

Step-3 (Issuer) 9. The Issuer shall prepare a consolidated list of the applications and send the applicants’ BOIDs in electronic

(text) format in a CDROM to CDBL for verification. The Issuer shall post the consolidated list of applicants on its website and websites of the Exchanges. CDBL shall verify the BOIDs as to whether the BO accounts of the applicants are active or not.

10. On the next working day, CDBL shall provide the Issuer with an updated database of the applicants containing BO Account Number, Name, Addresses, Parent s’ Name, Joint Account and Bank Account information along with the verification report.

11. After receiving verification report and information from CDBL, the Issuer shall scrutinize the applications, prepare category wise consolidated lists of valid and invalid applications and submit a report of the final status of subscription to the Commission and the Exchanges within 10 (ten) working days from the date of receiving information from the Exchanges.

12. The issuer and the issue manager shall conduct category wise lottery with the valid applications within 03 (thre

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