Agro Organica PLC has received approval to raise Tk 5 crore by listing on the SME board and attracting stock market investors. The DSE-SME, a small-cap board created in April 2019, enables small and medium enterprises (SMEs) with paid-up capital between Tk 5 crore and Tk 30 crore to generate funds from the stock market. Agro Organica, an agricultural company, will issue 50 lakh shares valued at Tk 10 each for eligible investors. The Bangladesh Securities and Exchange Commission (BSEC) granted the company’s listing in a recent commission meeting.
The funds raised will be utilized to expand the company’s factory, acquire machinery, and bolster working capital. Agro Organica, operating since 2015, engages in agro-business activities such as contract farming, trading, processing, and manufacturing for both local and global markets. Its popular brand, “Khusboo,” offers around 100 product varieties, including rice, dairy products, pickles, jellies, and spices. As of the first nine months of the 2021-22 fiscal year, the company’s earnings per share stood at Tk 1.12, and its net asset value per share was Tk 14.67. However, the BSEC imposed a condition on Agro Organica, preventing the issuance of bonus shares after three years of listing on the SME platform. Shahjalal Equity Management serves as the issue manager for the offering.