Investment Banking

Welcome to Our Presentation
Repeat Public Offering

-------PMCL
Legal Finance & Investment

Corporation LTD (LFIC)
Fundamentals of Human
Resource Management,
10/e, DeCenzo/Robbins
Chapter 8, slide 1
Legal Finance & Investment

Corporation Ltd
Sl no.
Name
ID No.
JANNATUL NAIMA (CEO)
18-065
OBYDUL HOQE (CMO)
18-087
BILLAL HOSEN (CFO)
18-155
SHAHANAZ PARVIN (Project

manager)
18-259
SAFWAN CHOWDHURY (SCM)
18-263
Prospectus - PMCL
PMCL
One of the supreme and tech-oriented cement
manufacturers in Bangladesh.
Manufactures European standard Cement using
the best raw materials and technical excellence.
the Company established in 2001 and started its
commercial operation in 2004
cement is certified by Buet, BSTL and ISO
9001:2008 and fully automated manufacturing
facility complies with Bangladeshi BDS EN,
American AStM, European EN and Indian BIS
standards.
aggregate capacity amount of 2.82 Million Mt per
annum.
Why Should You Invest ?
Why Should You Invest ?
Achievements
Associa
te
Compa
ny
Subsidi
ary
Compa
ny
National
Cement Mills
Limited
Premier Power
Generation
Limited.
Product Details
Increase in sales(%)
Currently producing
8000 tons per
28%
day.
21%
Produces15%
12%
Increase in sales (%)
1.
Ordinary
Portland
Cement
9%
2. Composite Portland Cement
Exports 12% products to India,
Year
Myanmar and Thailand.
30%
25%
20%
15%
10%
5%
0%
2011
2012
2013
2014
2015(expected)
Uses of Fund
Sl. No.
Particulars
Amount in
BDT million
1.
Machineries for
3rd Unit
338
2.
Wheel Loader
140
Production Capacity(in million MT)
3.
Barge Loader
430
3.5
Implementati
on Schedule
2.6 6 month
Within
2.4
of getting RPO
proceeds
1.2
0.6
Within 4
months
Within 3
months
4.
E-crane
130
Within 1 month
5.
Others
642
Within 5
2014months
2015 2016(expected)
2010
2012
Years
Financial Health of the Company
RISK FACTORS
MANAGEMENTS PERCEPTION ABOUT THE RISKS
Interest Rate Risk

(volatile
interest rate over the year- enhances the cost
of fund )
Exchange Rate Risk
(most of the raw
materials are
imported from abroadunfavorable
volatility of foreign currency
may affect the profitability )
Industry Risks
(market will
be more competitive due to excess capacity
in the industry- competition on pricing of
products)
Market and Technology Related Risks
(technological obsolescence as capital based
industry)
emphasizes on equity based financing to

reduce dependency on borrowed fundlower impact upon the financial
performance
favorable adjustment of price in case of
adverse exchange rate fluctuations and
international price movements-minimizing
exchange rate risk by boosting export
earnings, which contribute around 5.95%
of total revenue
industry is growing at an average rate of
10%-12% per annum- geographical
advantage as located in Chittagong
expanding production capacity with the
latest technology
RISK FACTORS
MANAGEMENTS PERCEPTION ABOUT THE RISKS
Potential
or
Existing
Government
Regulations
(unfavorable
Income Tax Rules,
VAT Rules,
environmental rules)
unlikely the government will initiate

any fiscal measure having adverse
effect on the growth of the industry
Sourcing of Raw Materials

(raw
materials of cement imported
from
different countries-ability to
source raw
materials specially clinker at competitive
price)
preferential services contract with

shipping co.-bilateral understanding
with independent suppliers
Supply Chain Management

(Many
strong producers including multinationalsefficient supply chain)
distribution fleet-dedicated covered

vans-bulk carriers-lighter vessels
Refund Of Subscription Money

Through banking channel for onward
deposit of the refund money into the
applicants bank
Through issuance of refund warrant
Subscription by and Refund to

Non-Resident Bangladeshi (NRB)
through crossed bank cheque marking
Account Payee only
paid in Taka or US dollar or UK pound sterling
or EURO at the rate of exchange mentioned
Features of RPO
1.Valuation
based on Net Asset Value per share:
Share capital
Revaluation reserve
Tax holiday reserve
Share premium
1,054,500,000
356,868,534
2,274,386
441,835,000
Retained earnings
1,162,879,482
total equity
3,018,357,402
Number of Share outstranding

Net Assets Value(NAV)
106506740
28.34
2.
Weighted average Earnings Based Price
Year
ended
on June
(1)
2012
2013
EPS
2014
Total
No of
share
(2)
Net Profit
After tax
(3)
932200
1.87
50
998335
5
13
174,321,4
94
499,167,5
67
106506
509,102,2
4.78
740 18
Weight
of No of
Shares
(4)
0.311
0.333
0.356
Weighted Average Net Profit After Tax during the period

2012-14
No of shares outstanding as on June 30,2014
EPS based on Weighted Average Net Profit After Tax
54247035.49
166355993.6
181,008,020.61
299560 1,182,591,
279
304
Average DSE
market P/E
earning Based price per
Weighted
Average Net
Profit After Tax5=
4*3
401611049.7
401611049.7
106506740
3.770757128
30
3. Share price based on

projected earnings per share
Year
Projected Net
profit after tax
Projected EPS
2015
2016
2017
625,454,831 749,158,081
.33
.44
5.90
7.06
8.34
Average projected
EPS
7.10
Average market
P/E for June, 2015
33.25
Value per share

based on
projected EPS
Prospectus.xlsx
884,619,418.09
236.08
4. Price based on P/E of

similar companies
average market P/E of similar company
P/E
Price Based on P/E of

similar companies
EPS
HEIDELB
cement
CONFIDCEM
14.08
26.09
14.44
6.24
MEGHNACEM
11.83
9.24
ARAMITCEM
61.84
0.51
LAFSURFCEML
53.25
MICEMENT
18.22
4.49
28.943
33
8.095
Average
average P/E of similar

company
28.94
EPS(Dcember 2014)
8.095
value based on P/E of

Similar stock
234.30
Share Allotment
No. of
Shares
Particulars
A. 20% of RPO of ordinary Shares are reserved for

afected small investors
B. 10% of RPO of Shares shall be reserved for Non

Resident
Bangladeshis (NRB)
C. 10% of RPO of Shares shall be reserved for

Mutual Funds and
Collective Investment schemes registered with the
Commission
D. Remaining 60% of RPO of Shares shall be
opened for subscription by The General
Public.
Total
Amount
(Tk.)
2,400,000
52,800,00
0
1,200,000
26,400,00
0
1,200,000
26,400,00
0
7,200,000
158,400,00
0
12,000,000 264,000,00
0
Plan of distribution
Sl.
Name and address of

underwriters
No.
1
ICB Capital Management

Limited
No. of Share
Amount
(TK.)
Underwritten
3,000,000
420000000
BDBL Bhaban (Level-16),

8 Rajuk
Avenue,
Dhaka-1000
IIDFC Capital Limited
3,000,000
420000000
Eunoos Trade Center

(Level-7), 5253, Dilkusha C/A,
Dhaka-1000
Total
6,000,000
840000000
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Welcome to Our Presentation

Repeat Public Offering

Legal Finance & Investment

Legal Finance & Investment

JANNATUL NAIMA (CEO)

OBYDUL HOQE (CMO)

BILLAL HOSEN (CFO)

SHAHANAZ PARVIN (Project

SAFWAN CHOWDHURY (SCM)

Why Should You Invest ?

Why Should You Invest ?

Production Capacity(in million MT)

Financial Health of the Company

MANAGEMENTS PERCEPTION ABOUT THE RISKS

Interest Rate Risk

emphasizes on equity based financing to

MANAGEMENTS PERCEPTION ABOUT THE RISKS

unlikely the government will initiate

Sourcing of Raw Materials

preferential services contract with

Supply Chain Management

distribution fleet-dedicated covered

Refund Of Subscription Money

Subscription by and Refund to

based on Net Asset Value per share:

Number of Share outstranding

Weighted average Earnings Based Price

Weighted Average Net Profit After Tax during the period

earning Based price per

3. Share price based on

Value per share

4. Price based on P/E of

Price Based on P/E of

average P/E of similar

value based on P/E of

A. 20% of RPO of ordinary Shares are reserved for

B. 10% of RPO of Shares shall be reserved for Non

C. 10% of RPO of Shares shall be reserved for

Name and address of

ICB Capital Management

BDBL Bhaban (Level-16),

Eunoos Trade Center

What Else Do You wana

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