Executive Summary

A Prospectus is a formal legal document that is required by and filed with the Securities and
Exchange Commission (SEC) that provides details about an investment offering for sale to the
public. It is like a Bible for the stakeholders of company including investors, shareholders,
investment banks, issue managers, SEC authorities, company management etc. Two major types of
prospectus are made by a company such as Preliminary prospectus or Red Herring and Final
prospectus. Each type of prospectus is of great importance to the parties related to them.

We have prepared a prospectus of Bangas Ltd. that opted to go for public very soon. We have
included Statutory conditions, Disclosures, Declaration and Due diligence Certificate of the issue
manager and the underwriter. We have also considered different risk factors and managements’
Perception including Interest rate risk, Exchange rate risk, Industry risk, Marketing risk,
Technology risk, Potential changes in global or national politics, History of Non operation risk,
Operational risk, Distribution risk etc.

Other than these here are also details information about the company, financial condition of the
company, information about directors and officers, offering price method, market price securities
etc. After that our plan of distribution includes underwriting of shares & underwriters obligation,
commission of underwriters, rights of underwriters, allotment, material contacts, manager to the
issue, commission to the bankers etc.

1
Introduction

2
Objective of the report:

Primary Objective:

The primary objective of this report is to fulfill the partial requirements of the course “Investment
Banking & Lease financing, F-403”.
Secondary Objective:

To gather the basic company related information about our selected company “Bangas
Limited”.
To analyse the annual reports to find out necessary data of our selected company make
prospectus.

Methodology:
This report has been prepared on the basis of experience gathered during the period of the semester.
We have also got information from website and related books for the preparation of this report. We
have presented our experience and findings by using different analysis, charts and tables. Relevant
data for this report has been collected directly from the annual reports of Bangas Limited, internet
and our text book. To prepare this Report we mainly depend on the Secondary data.

Limitations:
 Lack of information sources of the selected company.
 Data insufficiency for calculation.
 Lack of experience about the topic.

3
‘’If you have any query about this document, you may contact Issuer, Issue manager and
Underwrites’’
Prospectus of Bangas Limited

Corporate Office
South Avenue Tower (6th Floor)
House# 50, Road# 3, 7
Gulshan Avenue, Dhaka-1212, Bangladesh
Tel : 9847926, 9849458
Fax : 880-2-9862312, 9862803.

Public offer of 1,500,000 ordinary shares of tk 12 each at par amounting to 18,000,000.

Subscription
For Resident Bangladeshis Opening date- 15.08.18
Closing date- 21.08.18
For Non-Resident Bangladeshis Opening date- 15.08.18
Closing date- 25.08.18

Managers to the Issue

ICB CAPITAL MANAGEMENT LIMITED

( A Subsidiary of ICB)
BDBL Bhaban, (Level-16), 8 Rajuk Avenue, Dhaka-1000
Phone- 9585691, Email- ceocmcl@accesstel.net
Fax: 088-2- 9555707
Website: www.icbcml.com.bd

Underwriters
CAPM Advisory Limited
Tower Hamlet (9th Floor),
16, Kemal Ataturk Avenue, Banani C/A, Dhaka-1213.
Tel: +88-02 9822391-2,
Fax: +88-02-9822393
Website: www.capmadvisorybd.com

4
Trust Bank Investment Limited
Peoples Insurance Bhaban(12th Floor), 36 Dilkusha C/A,
Dhaka-1000
Prime Finance and Investment Limited
Eunoos center, level-14
52-53, Dilkusha C/A, Dhaka-1000
Issue date of the prospectus: July 22, 2017
The issue shall be placed in „N‟ category “
Consent of the Bangladesh and exchange commission has been obtained to the issue/offer of these
securities under the securities and exchange ordinance, 1969, and the Securities and Exchange
Commission (public issue) rules, 2006. 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/chief financial officer, issue manager, underwriter and/or auditor.

Availability of the prospectus

Prospectus of the company can be available on the following addresses,

Name & Address Contact person Contact Number

Bangas Limited
South Avenue Tower (6th Floor)
House# 50, Road# 3, 7
Gulshan Avenue, Dhaka-1212, Bangladesh
Tel : 9847926, 9849458
Fax : 880-2-9862312, 9862803.

Issue Manager: Contact Person Contact Number

CAPM Advisory Limited
Tower Hamlet (9th Floor),

5
16, Kemal Ataturk Avenue, Banani C/A, Dhaka-1213.
Tel: +88-02 9822391-2,
Fax: +88-02-9822393
Website: www.capmadvisorybd.com
Tania Sharmin
Chief Executive Officer (CEO)
Tel: 9586796
Fax: 880-2-9567965691
Trust Bank Investment Limited
Peoples Insurance Bhaban (12th Floor), 36 Dilkusha C/A,
Dhaka-1000
M. Jamirul Islam
Senior Vice President
Tel: 9586285
Fax: 880-2-9567959437
Prime Finance and Investment Limited
Eunoos center, level-14
52-53, Dilkusha C/A, Dhaka-1000
Shawkat Jahan Khan
Senior vice president
Tel: 9571213, 9569902
Fax: 880-2-8561784

Stock Exchanges Available at Contact Number

Dhaka Stock Exchange Limited (DSE)
9/F Motijheel C/A , Dhaka-1000
DSE library Tel: 880-2- 9564601-7, 966944-8
Chittagong Stock Exchange Limited
(CSE)
1080, Sheikh Mujib Road, Agrabad,
Chittagong-4100

6
CSE Library 720871-3
Prospectus is also available on web sites of BSEC (www.sec.gov.bd), Bangas Limited , Dhaka
Stock Exchange Limited (www.dsebd.org),Chittagong Stock Exchange limited
(www.csebd.com),Banco Finance & Investment Limited (www.bfil.org),Alpha Capital
Management Limited(www.alphacml.com) and at the public reference room of the Bangladesh
Securities and Exchange Commission (BSEC) for reading and study.

7
 Section 1:
Declarations & Due Diligence
Certificates

8
 Section 1: Declarations & Due Diligence Certificates

a) DISCLOSURES IN RESPECT OF ISSUANCE OF SECURITIES IN

DEMATERIALIZED FORM

―As per provisions of the Depository Act, 1999 and regulations made there under, shares will only
be issued in dematerialized condition. All transfers/transmissions/splitting will take place in the
Central Depository Bangladesh Limited (CDBL) and further issuance of shares (rights/bonus) will
be issued in dematerialized form only‘‘.

b) CONDITIONS UNDER 2CC OF THE SECURITIES AND EXCHANGE ORDINANCE,

1969

PART—A

i. The company shall go for Initial Public Offer (IPO) for 1500000 Ordinary Shares of Tk. 10.00
each following the Securities and Exchange Commission (Public Issue) Rules, 2006, the Depository
Act, 1999 and regulations made there under.

ii. 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 5 (Five)
working days of issuance of the consent letter. The issuer shall post the full prospectus, vetted
by the Bangladesh Securities and Exchange Commission, in the issuer's website and shall
also put on the websites of the Commission, stock exchanges, and the issue manager, within
5 (Five) 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 BSEC, the stock exchanges and the
issue managers a diskette containing the text of the vetted prospectus in "MS Word" format.

iii. Sufficient copies of prospectus shall be made available by the issuer so that any person requesting
a copy may receive one. A notice shall be placed on the front of the application form distributed
in connection with the offering, informing that interested persons are entitled to a prospectus, if they
so desire, and that copies of prospectus may be obtained from the issuer and the issue

9
manager. The subscription application shall indicate in bold type that no sale of securities shall be
made, nor shall any money be taken from any person, in connection with such sale until 25 (Twenty
five) days after the prospectus has been published.

iv. The company shall submit 40 (Forty) copies of the printed prospectus to the Bangladesh
Securities and Exchange Commission for official record within 5 (Five) working days from
the date of publication of the abridged version of the prospectus in the newspaper.

v. The issuer company and the issue manager shall ensure transmission of the prospectus, abridged
version of the prospectus and relevant application forms for NRBs through email, simultaneously
with publication of the abridged version of the prospectus, to the Bangladesh Embassies and
Missions abroad and shall also ensure sending of the printed copies of abridged version of the
prospectus and application forms to the said Embassies and Missions within 05 (Five) working days
of the publication date by Express Mail Service (EMS) of the postal department. A compliance
report shall be submitted in this respect to the BSEC jointly by the issuer and the Issue Managers
within 02 (Two) working days from the date of said dispatch of the prospectus and the forms.

vi. The paper clipping of the published abridged version of the prospectus, as mentioned at condition
no. 2 above, shall be submitted to the Commission within 24 hours of the publication thereof.

vii. The company shall maintain separate bank account(s) for collecting proceeds of the
Initial Public Offering and shall also open Foreign Currency (FC) account(s) to deposit the
application money of the Non Resident Bangladeshis (NRBs) for IPO purpose, The company
shall open the above-mentioned accounts for IPO purpose; and close these accounts after
refund of over-subscription money. Non-resident-Bangladeshi (NRB) means Bangladeshi
citizens staying abroad including all those who have dual citizenship (provided they have a valid
Bangladeshi passport) or those, whose foreign passport bear a stamp from the concerned Bangladesh
Embassy to the effect that no visa is required for traveling to Bangladesh.

viii. The issuer company shall apply to all the stock exchanges in Bangladesh for listing within 7
(Seven) working days from the date of issuance of this letter and shall simultaneously submit
the vetted prospectus with all exhibits, as submitted to BSEC, to the stock exchanges.

ix. The following declaration shall be made by the company in the prospectus namely,

10
‟Declaration about Listing of Shares with the stock exchange (s)”

None of the stock exchange(s), if for any reason, grants listing within 75 (Seventy Five) 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 75 (Seventy Five) 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) per month
above the bank rate, to the subscribers concerned. The issue manager, in addition to the issuer
company, shall ensure due compliance of the above mentioned conditions and shall submit
compliance report thereon to the Commission within 07 (Seven) days of expiry of the aforesaid
15 (Fifteen) days’ time period allowed for refund of the subscription money.

x. The subscription list shall be opened and the sale of securities commenced after 25(Twenty
Five) days of the publication of the abridged version of the prospectus and Shall remain open for 5
(Five) consecutive banking days.

xi. A non-resident Bangladeshi shall apply either directly by enclosing a foreign demand draft drawn
on a bank payable at Dhaka, or through a nominee by paying out of foreign currency deposit
account maintained in Bangladesh or in Taka, supported by foreign currency encashment certificate
issued by the concerned bank, for the value of securities applied for through crossed bank
cheque marking ―Account Payee only. The NRB applicants shall send applications to the issuer
company within the closing date of the subscription so as to reach the same to the company by the
closing date plus 09 (Nine) days. Applications received by the company after the above time
period will not be considered for allotment purpose.

xii. The company shall apply the spot buying rate (TT clean) in US Dollar, UK Pound Sterling and
Euro of Sonali Bank Ltd, which shall be mentioned in the Prospectus, as prevailed on the date of
opening of the subscription for the purpose of application of the NRBs and other non-
Bangladeshi persons, where applicable.

xiii. The company and the issue manager shall ensure prompt collection/clearance of the
foreign remittances of NRBs and other non-Bangladeshi(s), if applicable, for allotment of shares.

11
xiv. Upon completion of the period of subscription for securities, the issuer and the issue manager
shall jointly provide the Commission and the stock exchanges with the preliminary status of
the subscription within 5 (Five) working days, in respect of the following matters, namely:

 Total number of securities for which subscription has been received;

 Amount received from the subscription; and
 Amount of commission paid to the bankers to the issue.
xv. The issuer and the issue manager shall jointly provide the Commission and the stock exchanges
with the list of valid and invalid applicants (i.e. final status of subscription) in electronic form in 02
(Two) CDs and final status of subscription to the Commission within 03 (Three) weeks after the
closure of the subscription along with bank statement (original), branch-wise subscription statement.
The list of valid and invalid applicants shall be finalized after examination with the CDBL in
respect of BO accounts and particulars thereof.

xvi. The IPO shall stand cancelled and the application money shall be refunded immediately (but
not later than 05 (Five) weeks from the date of the subscription closure), if any of the following
events occur:

 upon closing of the subscription list it is found that the total number of valid applications (in
case of under subscription including the number of the underwriter) is less than the
minimum requirement as specified in the listing regulations of the stock exchange(s)
concerned; or
 At least 50% of the IPO is not subscribed.
xvii. 20% of the total public offering shall be reserved for Affected Small Investors, 10% of total
public offering shall be reserved for non-resident Bangladeshi (NRB) and 10% for mutual funds and
collective investment schemes registered with the Commission, and the remaining 60% shall be
open for subscription by the general public. In case of under subscription under any of the 10% and
20% categories mentioned above, the unsubscribed portion shall be added to the general public
category and, if after such addition, there is over subscription in the general public category, the
issuer and the managers to the issue shall jointly conduct an open lottery of all the applicants added
together.

12
xviii. All the applicants shall first be treated as applied for one minimum market lot of 200 shares
worth Taka 6,000/- (Six Thousand only). If, on this basis, there is over subscription, then lottery
shall be held amongst the applicants allocating one identification number for each application,
irrespective of the application money. In case of over-subscription under any of the categories
mentioned hereinabove, the issuer and the issue managers shall jointly conduct an open lottery of
all the applications received under each category separately in presence of representatives from the
issuer, the stock exchanges and the applicants, if there be any.

xix. 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 makes 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 shall be forfeited by the Commission and the balance amount will be
refunded to the applicant.

xx. The applicant shall provide with the same bank account number in the application form as it is
in the BO account of the application.

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

xxii. Lottery (if applicable) shall be held within 4 (Four) weeks from closure of the subscription
date.

xxiii. The company shall issue share allotment letters to all successful applicants within 5 (Five)
weeks from the date of the subscription closing. Within the same time, refund to the unsuccessful
applicants shall be made in the currency in which the value of securities was paid for by the
applicants without any interest, through direct deposit to the applicant’s bank account as far as
possible/ Account Payee Cheque/ refund warrants with bank account number, bank's name and
branch as indicated in the securities application forms payable at Dhaka/ Chittagong/ Khulna/
Rajshahi/ Barisal/ Sylhet/ Bogra, as the case may be subject to condition No. 19 & 21 above. Refund
money of the unsuccessful applicants shall be credited directly to their respective bank accounts,
who have chosen the option in the IPO application forms, as maintained with the bankers to the

13
issue or any other banks mentioned in the application. A compliance report in this regard shall be
submitted to the Commission within 7 (Seven) weeks from the date of closure of subscription.

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

xxiv. In the event of under-subscription of the public offering, the unsubscribed portion of securities
shall be taken up by the underwriter(s) (subject to Para -16 above). The issuer must notify the
underwriters to take up the underwritten shares within 10 (Ten) days of the closing of subscription
on full payment of the share money within 15 (Fifteen) days of the issuer's notice. The underwriter
shall not share any underwriting fee with the issue managers, other underwriters, issuer or the
sponsor group.

xxv. All issued shares of the issuer at the time of according this consent shall be subject to a lock-
in period of 3 (Three) years from the date of issuance of prospectus or commercial operation,
whichever comes later. Provided that the persons (other than Directors and those who hold 5% or
more shares in the company), who have subscribed to the shares of the company within immediately
preceding two years of according consent shall be subject to a lock-in period of 1 (One) year from
the date of issuance of prospectus or commercial operation, whichever comes later.

xxvi. In respect of shares of Sponsors/Directors/Promoters (if in paper format) shall be handed over
to security custodian bank registered with BSEC and shall remain till completion of lock in and the
name and branch of the bank shall be furnished to the Commission jointly by the issuer and issue
managers, along with a confirmation thereof from the custodian bank, within one week of listing of
the shares with the stock exchange(s). Or they (shares of Sponsors/ Directors/ Promoters) can be
demoted and will remain in lock-in under CDBL system and issuer will submit a dematerialization
confirmation report generated by CDBL and attested by Managing Director of the company along
with lock-in confirmation with BSEC 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 BSEC.

14
xxvii. The company shall apply to the stock exchanges for listing within 7 (Seven) working days of
issuance of this letter and shall simultaneously submit to the Commission attested copies of the
application filed with the stock exchanges.

xxviii. The company shall not declare any benefit/dividend other than cash based on the financial
statements for the year ended 30 June, 2014 before listing of its capital with Stock Exchange(s).

xxix. Making of any false statement in the application or supplying of incorrect information there
in 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 and after issuance of the same by the issuer. The said forfeited application money or share
(unit) will be deposited in the account of Bangladesh Securities and Exchange Commission (BSEC).
This is in addition to any other penalties as may be provided for by the law.

xxx. Updated Corporate Governance Guide line has to be complied with and a compliance report
there with shall be submitted to the Commission before 7 (seven) days of opening of subscription.

PART—B

1. In addition to the existing IPO application process, applicants can also apply through Their
Stockbroker/Merchant Bankers in the following process:

Step-1 (Applicant)

a. Applicants other than Non-resident Bangladeshi (NRB) and Foreign applicants for public issue
of securities shall submit application/instruction, within the subscription period, to the Stockbroker/
Merchant Banker where the applicant maintains BO account.

b. The application/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 the applicant shall make the application
money available in respective customer account maintained with the Stockbroker/Merchant Banker.
No margin facility, advance or deferred payment is permissible for this purpose.

15
Application/instructions shall be preserved by the same Stockbroker/Merchant Banker up to 6
months from listing of the securities with exchange.

Step-2 (Intermediary)

a. The Stockbroker/Merchant Banker shall maintain separate bank account only for this purpose
namely "Public Issue Application Account". The Stockbroker/Merchant Banker shall verify the
availability of fund and if find in order, block the customer account for an amount equivalent to the
application money, accumulate all the application/instructions received up to the subscription
closing date, deposit the amount in the "Public Issue Application Account" maintained with its bank,
instruct the banker to block the account for an amount equivalent to the aggregate application money
and to issue a certificate in this regard. In case of application submitted by the Stock-dealer or the
Merchant Banker's own portfolio, the application amount should also be transferred to the "Public
Issue Application Account".

b. Banker of the Stockbroker/Merchant Banker shall block the account(s) as requested for, issue a
certificate confirming the same and provide it to the respective Stockbroker/Merchant Banker. 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 subscription closing date, send it to the issuer both in electronic (text
format with tilde separator) and printed format along with the certificate issued by its banker.

Step-3 (Issuer)

a. The issuer shall prepare consolidated list of the applications and send the applicants' BOIDs in
electronic (text format with tilde `~' separator) format in a CDROM to CDBL for verification. CDBL
shall verify the BOIDs as to whether the BO accounts of the applicants are active or not. Along with
the verification report, CDBL shall provide the issuer with an updated database of the applicants
containing BO Account Number, Name, Addresses, Parents' Name, Joint Account Information and
Bank Account Information. After receiving verification report and information from CDBL, the
issuer shall scrutinize the applications, prepare category wise consolidated lists of the valid and
invalid applications, submit status reports of subscription to the Commission and the stock
exchanges and conduct lottery in line with the conditions of the consent letter.

16
b. Within 02 (two) working days of conducting lottery, the issuer shall:

I. send the lists of the successful and unsuccessful applicants (other than NRB and foreign) in
electronic (text format with tilde `~' separator) and printed format to the Stockbroker/Merchant
Banker, request them to unblock the amount blocked earlier and remit the amount of successful
applicants to the issuers respective Escrow Account opened for subscription purpose.

II. Issue allotment letters in the names of successful applicants in electronic format with digital
signatures and send those to respective Stockbroker/Merchant Bankers. To credit the allotted shares
to the respective BO accounts, the issuer shall send consolidated allotment data (BOID and number
of securities) in text format in a CDROM to CDBL.

Step-4 (Intermediary)

a. On the next working day of receiving the documents from the issuer and issue manager, the
stockbroker/Merchant Banker shall request its banker to release the amount blocked earlier and
remit the aggregate amount of successful applicants deducting service charge to the -Escrow'
account of the issuer opened for the subscription purpose.

b. On the next working day of receiving request from the Stockbrokers/Merchant Bankers, their
bankers shall unblock the amount blocked in the account(s) and remit the amount as requested for
to the issuer's 'Escrow' account. Simultaneously, the stockbrokers/Merchant Bankers shall unblock
the customer accounts; inform the successful applicants about allotment of securities and the
unsuccessful applicants about releasing their blocked amounts. The unblocked amounts of
unsuccessful applicants shall be placed as per their instructions.

Miscellaneous:

a. The issuer and Issue Manager(s) shall jointly ensure compliance of the above.

b. The Stockbroker/Merchant Banker shall be entitled to service charge at a rate of 0.05% on the
total amount of application money received by them. The service charge shall be paid by the issuer
and deducted by the Stockbroker/Merchant Banker from the amount of successful applicants while
remitting to the issuer. In case of shortage of the service charge, the Stockbroker/Merchant Banker
shall send a bill to the issuer and the issuer shall pay it within 02 (two) working days. The

17
Stockbroker/Merchant Banker shall provide the issuer with a statement of the remittance amount
and the processing fee.

2. The above application process is a pilot project and optional for investors, i.e. investors can apply
either following new process through stockbroker/merchant banker or in existing process through
banker to the issue.

3. List of the Stockbroker/Merchant Bankers participating in the pilot project shall be disclosed in
the prospectus and abridged version thereof. Only the applicants maintaining accounts with the
Stockbroker/Merchant Bankers name contained in the list can apply through the new process.

PART—C

1. The issuer and the Issue Manager shall ensure that the abridged version of the prospectus and the
full prospectus is published correctly and in strict conformity with the conditions of this letter
without any error/omission, as vetted by the Bangladesh Securities and Exchange Commission.

2. The issue manager shall carefully examine and compare the published abridged version of the
prospectus on the date of publication with the copy vetted by BSEC. If any discrepancy/
inconsistency is found, both the issuer and the issue manager shall jointly publish a corrigendum
immediately in the same newspapers concerned, simultaneously endorsing copies thereof to BSEC
and the stock exchange(s) concerned, correcting the discrepancy/inconsistency as required under
`Due Diligence Certificates' provided with BSEC.

3. Both the issuer company and the issue manager shall, immediately after publication of the
prospectus and its abridged version, jointly inform the Commission in writing that the published
prospectus and its abridged version are verbatim copies of the same as vetted by the Commission.

4. The fund collected through Public Offering shall not be utilized prior to listing with stock
exchanges and that utilization of the said fund shall be effected through banking channel, i.e. through
account payee cheque, pay order or bank drafts etc.

5. The company shall furnish status report on utilization of Public Offering proceeds, audited by
foreign affiliated auditors and authenticated by the board of directors to the Commission and the
stock exchanges within 15 (Fifteen) days of the closing of each month until such fund is fully

18
utilized, as mentioned in the schedule contained in the prospectus, and in the event of any
irregularity or inconsistency, the Commission may employ or engage any person, at issuer's cost, to
examine whether the issuer has utilized the proceeds for the purpose disclosed in the prospectus. At
the time of auditing the auditors will perform the audit under the following terms of reference
(TOR):

a) Whether IPO proceeds have been utilized for the purposes/heads as specified in the prospectus;

b) Whether IPO proceeds have been utilized in line with the condition (if any) of the Commission's
consent letter;

c) Whether utilization of IPO proceeds have been completed within the time
schedule/implementation schedule as specified in the published prospectus;

d) Whether utilization of IPO proceeds is accurate and for the purpose of the company as
mentioned/specified in the published prospectus; and

e) The auditors should also confirm that:(i)assets have been procured/imported/constructed

maintaining proper/required procedure as well as at reasonable price; and (ii) auditors report has
been made on verification of all

6. All transactions, excluding petty cash expenses, shall be effected through the company's bank
account(s).

7. Proceeds of the Public Offering shall not be used for any purpose other than those specified in
the prospectus. Any deviation in this respect must have prior approval of the shareholders in the
shareholders Meeting under intimation to BSEC and stock exchanges.

8. Directors on the Company's Board will be in accordance with applicable laws, rules and
regulations.

9. The financial statements should be prepared in accordance with Bangladesh Accounting

Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) as required by the
Securities and Exchange Rules, 1987.

19
10. If any quarter or half-year of the financial year ends after publication of the abridged version of
prospectus and before listing of its securities with any exchange, the company shall
disseminate/transmit/submit the said quarterly/half yearly financial statements in accordance with
the Commission's Notification SEC/CMRRCD/2008183/admin/03-34 dated September 30, 2016
and the section 13 of the Securities and Exchange Rules, 1987.

11. In the event of a rising issues concerning Price Sensitive Information as defined under the 1995
after publication of the abridged version of prospectus and before listing of its securities with any
exchange, the company shall disseminate/transmit/submit the information as price sensitive in
accordance with the Commission's Notification No. SEC/SRMI/200-953/1950 dated October 24,
2000.

PART-D

1. All the above conditions imposed under section 2CC of the Securities and Exchange Ordinance,
1969 shall be incorporated in the prospectus immediately after the page of the table of contents,
with a reference in the table of contents, prior to its publication.

2. The Commission may impose further conditions/restrictions etc. from time to time as and when
considered necessary which shall also be binding upon the issuer company.

PART-E

1. As per provision of the Depository Act, 1999 & regulations made there under, shares will only
be issued in dematerialized condition. All transfer/transmission/splitting will take place in the
Central Depository Bangladesh Ltd. (CDBL) system and any further issuance of shares (Including
rights/bonus) will be made in dematerialized form only. An applicant (including NRB) shall not be
able to apply for allotment of shares without Beneficial Owners (BO) account.

2. The company and the issue manager shall ensure due compliance of all the above conditions and
the Securities and Exchange Commission (Public Issue) Rules, 2006.

c) General Information

CAPM Advisory Limited (Lead Issue Manager) and Prime Finance Capital Management Limited
(Co-Issue Manager) have prepared this prospectus from information supplied byBangas Limited

20
(the Company) and also several discussions with Chairman, Managing Director, Directors and
related executives of the Company. The Directors of Bangas Limited, CAPM Advisory Limited
And Investment Limited and Prime Finance Capital Management Limited collectively and
individually, having made all reasonable inquires, confirm, to the best of their knowledge and belief,
that the information contained herein is true and correct in all material aspects and that there are no
other material facts, the omission of which, would make any statement herein misleading.

No person is authorized to give any information or to make any representation not contained in this
Prospectus and if given or made, any such information or representation must not be relied upon as
having been authorized by the Company or Issue Manager(s).

The Issue as contemplated in this document is made in Bangladesh and is subject to the exclusive
jurisdiction of the courts of Bangladesh. Forwarding this Prospectus to any person resident outside
Bangladesh in no way implies that the Issue is made in accordance with the laws of that country or
is subject to the jurisdiction of the laws of that country.

A copy of this Prospectus may be obtained from the Head Offices of Bangas Limited, CAPM
Advisory Limited and Prime Finance Capital Management Limited, the underwriters and the Stock
Exchanges where the securities will be listed.

d) DECLARATION ABOUT THE RESPONSIBILITY OF THE DIRECTOR(S),

INCLUDING THE CEO OF THE ISSUER

COMPANY “BANGAS LIMITED” IN RESPECT OF THE PROSPECTUS

This prospectus has been prepared, seen and approved by us, and we, individually and collectively,
accept full responsibility for the authenticity and accuracy of the statements made, information given
in the prospectus, documents, financial statements, exhibits, annexes, papers submitted to the
commission in support thereof, and confirm, after making all reasonable inquiries that all conditions
concerning this public issue and prospectus have been met and that there are no other information

21
or documents the omission of which make any information or statements therein misleading for
which the commission may take any civil, criminal or administrative action against any or all of us
as it may deem fit.

We also confirm that full and fair disclosure has been made in this prospectus to enable the investors
to make a well informed decision for investment.

Sd/- Sd/-

Md. Mozammel Haque Md. Mahbub-UL Haque

Managing Director Director

e) DECLARATION ABOUT FILING OF PROSPECTUS WITH THE REGISTRAR OF

JOINT STOCK COMPANIES AND FIRMS

A dated and signed copy of this Prospectus has been filed for registration with the Registrar of Joint
Stock Companies and Firms, Bangladesh, as required under Section 138(1) of the Companies Act,
1994 on or before the date of publication of this prospectus.

For Issuer

Sd/-

Md. Mozammel Haque

Managing Director

f) DECLARATION BY THE ISSUER ABOUT THE APPROVAL FROM BANGLADESH

SECURITIES AND EXCHANGE COMMISSION FOR ANY MATERIAL CHANGES

In case of any material changes in any agreement, contract, instrument, facts and figures,
operational circumstances and statements made in the Prospectus subsequent to the preparation of

22
the Prospectus and prior to its publication shall be incorporated in the Prospectus and the said
Prospectus shall be published with the approval of the Commission.

For Issuer

Sd/-Md. Mozammel Haque

Managing Director

g) DECLARATION BY THE ISSUE MANAGERS ABOUT THE APPROVAL FROM

BANGLADESH SECURITIES AND EXCHANGE COMMISSION FOR ANY MATERIAL
CHANGES

In case of any material changes in any agreement, contract, instrument, facts and figures, operational
circumstances and statements made in the Prospectus subsequent to the preparation of the Prospectus and
prior to its publication shall be incorporated in the Prospectus and the said Prospectus should be published
with the approval of the Commission.

For Issue Managers

Sd/- Sd/-

Tania Sharmin M. Mosharraf Hossain PhD, FCA

Managing Director & CEO CEO& Managing Director

CAPM Advisory Limited

Prime Finance and Investment Limited

h) Due Diligence Certificate of Issue Manager

Sub: Public offer of 1,500,000 Ordinary shares of Tk. 10.00 each at an issue price of Tk. 12.00 Each
including a premium of Tk. 2.00 per share totalling Tk. 18,000,000 of Bangas Limited.

We, the under-noted Issue Manager to the above-mentioned forthcoming Issue, state as follows:

23
1. We, while finalizing the draft Prospectus pertaining to the said Issue, have examined various documents
and other materials as relevant for adequate disclosures to the investors; and

2. On the basis of such examination and the discussion with the issuer Company, its directors and officers,
and other agencies, independent verification of the statements concerning objects of the Issue and the contents
of the documents and other materials furnished by the Issuer Company;

WE CONFIRM THAT:

a. The draft Prospectus forwarded to the Commission is in conformity with the documents, materials and
papers relevant to the issue;

b. All the legal requirements connected with the said Issue have been duly complied with; and

c. The disclosures made in the draft Prospectus are true, fair and adequate to enable the investors to make a
well informed decision for investment in the proposed Issue.

For Issue Manager

Sd/- Sd/-

Tania Sharmin M. Mosharraf Hossain PhD, FCA

Managing Director & CEO CEO& Managing Director

CAPM Advisory Limited Prime Finance and Investment Limited

i) DUE DILIGENCE CERTIFICATE OF UNDERWRITERS

Sub: Public offer of 1,500,000 Ordinary shares of Tk. 10.00 each at an issue price of Tk. 12.00 Each
including a premium of Tk. 2.00 per share totalling Tk. 18000000 of Bangas Limited.

We, the under-noted Underwriter(s) to the above mentioned forthcoming Issue, state individually and
collectively as follows:

24
1. We, while underwriting the above mentioned Issue on a firm commitment basis, have examined the draft
Prospectus, other documents and materials as relevant to our underwriting decision; and

2. On the basis of such examination, and the discussion with the Issuer Company; its directors and officers,
and other agencies; independent verification of the statements concerning objects of the Issue and the
contents of the documents and other materials furnished by the Issuer Company;

WE CONFIRM THAT:

a. All information as are relevant to our underwriting decision has been received by us and the draft
Prospectus forwarded to the Commission has been approved by us;

b. We shall subscribe and take up the un-subscribed Securities against the above mentioned Public Issue
within 15 (fifteen) days of calling up thereof by the Issuer; and

c. This underwriting commitment is unequivocal and irrevocable.

For Underwriter(s)

Sd/-

Tania Sharmin

Managing Director/Chief Executive Officer

CAPM Advisory Limited

25
 Section 2:
Risk Factors and
Management Perception of
Bangas Limited

26
Risk Factors and Management Perception of Bangas Limited
Risk and Concerns
As with all investments, investors should be aware that there are risks associated with an investment
in the Company. These risks could result in loss of income or capital investment. Investors are
encouraged to seek independent financial advice in the regard.

Industry Risk:
Industry Risk refers to the impact that the state's industrial policy can have on the performance of a
specific industry.
Entry of new competitors may increase the market competition and may adversely affect the
profitability of Bangas Limited.

Management Perception:
Food Business is a Distribution Intensive Business and Bangas has around 150 distributors/dealers
over the country. It may be difficult for a new company to establish such a wide distribution network
in a short period of time. Therefore it is difficult and time consuming for a new entrant to quickly
establish itself in the market and grab market share from this company.
Moreover, food business is a brand-dependent business. Bangas Limited is asked the consumers by
its brand name. The company is continuously concentrating on a “Pull” strategy instead of “Push”.
To this end, Bangas spends a large amount of fund for promotion and advertisement to further
enhance and strengthen its brand name.

Interest Rate Risks:

The interest rate risk is the risk that an investment's value will change due to a change in the absolute
level of interest rates, in the spread between two rates, in the shape of the yield curve, or in any
other interest rate relationship.

Interest rate risk is concerned with borrowed funds of short of short term and long term maturity.
Considering of money market and decreased of demand of loans/investments, increase current
liquidity position has down the rate of interest in recent time.

27
Management Perception:
The management of the Company is always aware of interest rate. If the interest rate increases the
cost of fund will increase, affecting profitability adversely.

Exchange Rate Risk:

Foreign exchange risk - also called FX risk, currency risk, or exchange rate risk - is the
financial risk of an investment's value changing due to the changes in currency exchange rates.
Exchange rate fluctuation may reduce the profitability of Bangas because of its foreign trade
commitments from various sources of foreign exchange like raw materials and machineries.

Management Perception:
Bangas is able to pass on the additional cost of raw material through price increase. Its brand name
allows it to price without much difficulty. Competitors may also increase their price if the raw
material price increases.

Market and Technology related Risk:

Market risk is the fluctuation of returns caused by the macroeconomic factors that affect all risky
assets whereas Technology risk is any potential for technology failures to disrupt your business such
as information security incidents or service outages.

In the global market of 21st century, developed technology obsoletes the old service/product
strategy. So the existing technology may not be efficient enough to cope up with the future trend
and needs.

Management Perception:
Bangas continuously upgrades its machines and technology. So the risk of obsolete technology is
mitigated as the company continuously upgrades its technology every 5-6 years. Our proposed
expansion program will be availed for latest technology.

Changes in Economic & Political Condition:

Changing economic & political conditions may affect the demand for the product offered by the
company which may affect the turnover and profitability.

28
Social unrest due to political reasons may cause downturn of the economic activities which will
have adverse impact on demand of foods.

Management Perception:
Bangas was incorporated in 1980. It has already completed more than 37 years of successful
operation .It has no record of operation failure yet and chances of non-operative in future is very
remote.

29
 Section 3:

Description of the business

30
Description of the business
Bangas Ltd is established in 1980 we are a well-known manufacturer and exporter of a wide array
of delectable Biscuits, Noodles, chips etc. We are public Limited company in Bangladesh. Presently
we are exporting our product to Asia, USA & Europe.

In the year 2009, we developed our scientifically planned, state-of-the-art manufacturing unit,
manned by skilled workers who ensure strict adherence to our hygiene standards.( Also we are a
industrial Group having Industries from Spinning Mills , Knit & Dyeing Mills - Finished Knit
Garments and also we are in Electronic Media business etc.

Our Philosophy
Business is and always has been a dynamic and diversification process
We strive to be at the fore front of change in fashion and trend setting while in continuous pursuit
of quality and commitments through total customer focus in all operational areas.
Products to be of best available quality. Products for premium market segments integrated
diversification/product range expansion.
Care for value of money.
Faith in individual potential and respect for human values.
Encouraging innovation for constant improvements to achieve excellence in all functional areas.
Striving for technological development and research for quality product and better packaging.
Accepting Changes as a way of life.
Strict adherence to financial and administrative principles.
That is why we have based our production & marketing philosophy on three basic principles-
Stability, Quality and Efficiency.

Qualities of Bangas Products

 Bangas’s products are very well-known in our country. These are 100% vegetarian products.
The customers love them and pick up several items with their daily and weekly purchase to
add taste and variety to their regular meal.

31
  Everyone likes to keep a few packets of Bangas snacks at home as these can be offered to
friends, invitees and sudden visitors. The shelf life of 6-12 months comes in very handy as
these do not perish quickly.

 The biscuit named as ‘Grand Choice’ is one of the most sold biscuit in market is our
innovation.

 Bangas snacks are produced in a modern plant with high level of automation and untouched
by hands. The packaging is very attractive and draws attention of buyer when lying on the
shelf at the retail counters.

 Bangas products are already being imported by buyers in several countries.

Core Products
1) Grand Choice Biscuit

2) Mango Slice Cream Biscuit

3) Choco Cream Biscuit

4) Fruity Cream Biscuit

5) Bangas Noodles

6) Bangas Peya Corn Chips

Target Market
Main customers are the general people all over the country.

Name of associates, subsidiary/related holding company and their core

areas of business
The company has no associates, subsidiary/related holding company.

32
 Section 4:
Financial Condition

33
 Financial Condition

Material commitments for Capital expenditures

There are no material commitments for Capital expenditures except capital expansion as mentioned
in the utilization of IPO proceeds of the Prospectus.

Changes in the assets to pay off liabilities

None of the operating assets has been disposed off to pay off any liabilities of the Company.

34
Loans taken from or given to the holding/parent Company or subsidiary Company
The Company did neither take any loan from nor give any loan to its holding/parent company or
subsidiary company during the last five years.

Future contractual liabilities

The Company has no plan to enter into any contractual liabilities within next one year other than
normal course of business.

Future Capital Expenditure

The company has no plan for Future Capital Expenditure other than purchasing of capital machinery
as mention in the Use of Proceeds part of the prospectus.

Operating lease during last five years

The Company did not obtain any operating lease during the last five years.
Finance lease and other financial commitment during last five years
BANGAS did not have any financial lease or other financial commitments with any organization
during last five years.

Personnel related Schemes

The Company believes in supporting its employees and bonuses for its continued profitability and
growth.

Break down of issue expenses

Total IPO expenses are estimated as follows:

Particulars Basis Amount in BDT

Managers to the Issue fee 1% of public offering 180000
Credit Rating fee Lump sum 25000
Underwriting commission 0.50% on 50% of IPO amount 37500
(0.50%)
SEC fee
Application fee Fixed 10,000
Consent fee 0.15% of issued capital 94716
Fees related to Listing with the stock exchanges

35
 Application fee 10,000
Listing fees for stock 0.25% on 10 crore and @ 45000
exchanges (DSE & CSE) 0.15% for rest amount of Paid
up Capital Range (10,000 – 20
lac)
CDBL fees and expenses
Documentation fee 2,500
Initial Public Offering fee 0.00025 on Total IPO 4500
Annual fee 50000
Commission expenses
Bankers to the Issue 0.1% on Amount Collected 3600
commission (Assumed 10 Times)
Expenses related to printing and publication
Printing of prospectus 3,000 pcs. X Tk. 80 Per Copy 240,000
Publication of abridged Four national Dailies 200,000
version of prospectus
Printing of forms 100,000 pcs. X Tk. 1.5 per 150,000
copy
Lottery related expenses Estimated 100,000
including BUET fee
Tax on Share Premium 3% on premium amount 90000
Total 1242816

N B: Actual costs will vary if above mentioned estimates differ and will be adjusted accordingly

36
 Section 5:
Board of Directors

37
Directors and Officers
Name, age, designation of the directors
Sl. No Name Age Designation Working
Experience
(Years)
1 Rabeya Khatun 60 Chairman 35 years
2 Md. Mozzamel Haque 60 Managing Director 34 years
2 Md. Mahbub-Ul-Haque 55 Director 30 years
3 Md. Atiqul Haque 60 Director 29 years
4 Md. Abdul Allam 65 Independent Director 30 years
5 Md. Shakil Choudhury. FCA 50 Independent Director 19 years
6 S. M. Shahid-ul-Arafin 50 Secretary 25 years

38
 Section 6:
Features of IPO

39
Features of IPO

Determination of Offering Price:

Name of method Value

Method 1: Retained Earnings Approach 85.38
Method 2: Free Cash Flow 95.14
Method 3: Net Asset Value (NAV) Method 80.20
Average 86.91
New Issue 120

Market for Securities:

Market for the Securities Being Offered:

The issuer shall apply to all the stock exchanges in Bangladesh within 07 (seven) working days from
the date of consent accorded by the Commission to issue prospectus.

The issuer shall apply to

1. DHAKA STOCK EXCHANGE LIMITED

9/E, Motijheel Commercial Area, Dhaka-1000

2. CHITTAGONG STOCK EXCHANGE LIMITED

CSE Building, 1080, Sheikh Mujib Road, Chittagong 4100

Declaration about listing of shares with stock exchange:

None of the stock exchange(s), if for any reason, grants listing within 75 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 fifteen days from the date of refusal for listing by the

40
stock exchanges, or from the date of expiry of the said 75(Seventy five) days, as the case may
be. In case of non-refund of the subscription money within the aforesaid fifteen days, the
company directors, 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) per month
above the bank rate, to the subscribers concerned. The issue manager, in addition to the issuer
company, shall ensure due compliance of the above mentioned conditions and submit compliance
report thereon to the Commission within seven days of expiry of the aforesaid fifteen days period
allowed for refund of the subscription money.

Trading and Settlement:

Trading and settlement regulation of the stock exchanges shall apply in respect of trading and
settlement of the shares of the Company.

Description of securities outstanding or being offered:

Dividend, voting, pre-emption rights

The Share Capital of the company is divided into Ordinary Shares, carrying equal rights to
vote and receive dividend in terms of the relevant provisions of the Companies Act 1994 and
the Articles of Association of the company. All shareholders shall have the usual voting right
voting right in person or by proxy in connection with, among others, election of Directors and
Auditors and other usual agenda of General Meeting – Ordinary or Extra Ordinary. On a show of
hand, every shareholder present in person and every duly authorized representative of a shareholder
present at a General Meeting shall have one vote and on a poll every shareholder present in person
or by proxy shall have one vote for every share held by him or her. In case of any additional issue
of shares for raising further capital the existing shareholders shall be entitled to Right Issue of shares
in terms of the guidelines issued by the BSEC from time to time.

Conversion and liquidation rights

In terms of the provisions of the Companies Act 1994, Articles of Association of the Company and
other relevant rules in force, the shares of the Company are freely transferable. The company

41
shall not charge any fee for registering transfer of shares. No transfer shall be made to a firm, an
infant or person of unsound mind.

Dividend policy

 The profit of the Company, subject to any special right relating thereto created or
authorized to be created by the Memorandum of Association and subject to the
provisions of the Articles of Association, shall be divisible among the members in
proportion to the amount of capital paid-up on the shares held by them respectively.

 No larger dividend shall be declared than is recommended by the Directors, but the
Company in its General Meeting may declare a smaller dividend. The declaration of
Directors as to the amount of Net Profit of the Company shall be conclusive.

 No dividend shall be payable except out of the profits of the Company or any
other undistributed profits. Dividend shall not carry interest as against the Company.

 The Directors may from time to time pay the members such interim dividend as
in their judgment the financial position of the Company may justify.

 A transfer of shares shall not pass the right to any dividend declared thereon
before the registration of transfer.

 There is no limitation on the payment of dividends to the common stockholders of the

Company.

42
Other rights of stockholders

In terms of the provisions of the Companies Act 1994, Articles of Association of the Company and
other relevant rules in force, the shares of the Company are transferable. The Company shall not
charge any fee, other than Government duties for registering transfer of shares Financial statements
will be prepared in accordance with the International Accounting Standards consistently
applied throughout the subsequent periods and present with the objective of providing
maximum disclosure as par law and International Accounting Standard to the shareholders
regarding the financial and operational position of the company. The shareholders shall have
the right to receive all periodical statement and reports, audited as well as unaudited, published
by the company from time to time. The shareholder holding minimum of 10% shares of paid-
Up capital of the company shall have the right to requisition Extra-ordinary General Meeting of
the company as provided in section 84 of the Companies Act 1994.

43
 Section 7:
Plan for Distribution

44
Description of plan of distribution
Ordinary shares, receiving dividends and carrying equal rights to vote are the division of share
distribution of our selected company Bombay Sweets & Co. This division has been made according
to relevant provisions of the company’s act 1994 and also according to the company’s Articles of
the Association. Every shareholder has the usual voting rights either by person or by proxy in
connection with usual agenda of General meeting, election of Directors, Auditors etc. Every
shareholder who is present in person and every authorized representative of a shareholder, who is
present at a General meeting, shall have one vote. On other hand, every shareholder who is present
or by proxy, shall have one vote for every share he or she holds.

According to the guideline issued by shareholders, the existing shareholders shall be entitled to
Right Issue of the shares if there is any additional issue of shares for raising further capital.
BANGAS can distribute shares without any restrictions in terms of company rule 1994 and also
according to the Article of Association of the company and other relevant rules. For the transfer of
shares, the company shall not charge any fee for the registration of transfer of the shares. But the
company will not transfer any share to a minor or a person of unsound mind.

Dividend policy of Bangas

 The profit of the company which will be created by memorandum and Articles of
Association of the company and which also subject to the provisions of Articles of
Association, these shares shall be divided among the shareholders in terms of the amount of
the paid up capital of the shares.
 Any member of the company can declare divided which is larger than the dividend declared
by the directors. But the company declare a smaller dividend in the General meeting. In
terms of the company’s net profit, the declaration of the dividend will be conclusive.
 The shareholder of the company will get the dividend which comes from the profit of the
company or from any undistributed profit. But they will not receive any dividend from any
other source. The divided that the shareholder will receive, will not have any interest against
the company.

45
  The Directors will justify the financial position of the company through their time to time
interim payment to the shareholders.
 The right of any dividend declaration will not be passed by any transfer of shares and on the
other hand, this right will be passed before the registration of transfer.
 In the case of the payment of the dividend, the directors will not put any limitation in the
payment process which would be stipulated in any debt instrument or otherwise.

Shareholders’ other rights:

 The shares of BANGAS are transferable in terms of the provisions of the Companies Act
1994 and also according to the Articles of Association of the Company and other relevant
rules.
 The shareholders of the company will charge no transfer fee for the shares and will charge
shares only in Government duties for registering the transfer of shares.
 The shareholders also cannot transfer any shares to the people of unsound mind or people
who are under 18.
 The board of directors will prepare the financial statements of the company using the
International Accounting Standards and it will be applied consistently throughout the
subsequent periods of the financial year. It will be presented with the objectives of the
disclosures according to the law and International Accounting Standard and shareholders
will use these to regard the operational and financial position of the company.
 The financial statements will be presented in the form declared by the law & International
Accounting Standard.
 All the audited and unaudited reports and periodical statement and reports published by the
company will be received by the shareholders time to time. It is their right to receive those
periodicals.
 The shareholders of the company who hold minimum 10% of shares of the paid-up capital
of the company, requisition of extra ordinary General Meeting of the company will be a right
to them according to the Companies Act 1994, section 84.

BANGAS has not issued any debt security within last one year.

46
Subscription of money refund of BANGAS; the issuer of the shares has to refund the application
money to the applicant who has become unsuccessful by the public offer or by any of the following
manner as per SEC Notification. These manners are based on the options which the applicant gives
in the application form.

(a) In the respective application form of the subscription, deposit of the refund money will be
transferred into the applicant’s bank account through banking channel for onward deposit. Or,
(b) The transfer will be through the issuance of refund warrant which will be in the name and address
of the applicant which will be provided in the application form of subscription.

If there is any applicable service charge which has to be given to the applicant’s banker, the applicant
will bear the applicable service charge and a letter of intimation should be issued by the issuer. The
application form should confirm the date and amount remitted with details of the bank and to which
bank such remittance will be effected.

Refund and subscription of a Non-Resident Bangladeshi (NRB):

1. A Non-Resident Bangladeshi has to apply either by enclosing a foreign demand draft which has
been drawn on a bank and payable at Dhaka, or by a nominee who will pay out of foreign currency
deposit account maintained in Bangladesh or in Taka. This supported by foreign currency
encashment certificate issued by the concerned bank. It will be for the value of securities applied
through crossed bank cheque with the note “Account Payee only”.
2. The person will apply for value of securities, may be paid in Taka or UK pound sterling or US
dollar or EURO at the exchange rate which has been mentioned in the securities application form.
In the case of oversubscription, refund against has to be made in the currency in which currency the
value of securities was paid for by the applicants through the Account Payee bank cheque. This
bank cheque should be payable at Dhaka with bank’s name, bank account number and relevant
branch exactly as it was indicated in the application form of the securities. If the applicants’ bank
accounts refund amount of those applicants as mentioned in the applicants’ IPO Application Forms
and are maintained with the Bankers to the Issue and other banks as mentioned under “Refund of
Subscription Money”. Respective bank accounts will be directly credited into the applicants’
account as mentioned in their IPO Application Forms.

47
Availability of the securities of BANGAS:
The Offer:
1. Bombay sweets company’s IPO will be offered for 1500000 shares @ TK. 12 each (including
premium of 2 tk per share) and the total amount is Tk. 18000000/-. Securities and Exchange
Commission (Public Issue) Rules, 2006, has made 10% of total public offering as reserved for
nonresident Bangladeshi (NRB) and 10% for mutual funds, collective investment schemes
registered with commission. The remaining 80% has to be open by the general public for
subscription.
The division will be as follows:
Particulars No. of shares Amount (tk)
A. 10% of IPO of Shares shall be reserved 150000 1800000
for Non Resident Bangladeshis
B. 10% of IPO of Shares shall be reserved 150000 1800000
for Mutual funds and Collective
Investment schemes registered with the
Commission
C. Remaining 80% of IPO of Shares shall 1200000 14400000
be opened for subscription by The
General Public.
Total 1500000 18000000

2. According to the sub-rule 1(A), 1(B) and 1(C), issuer will offer all the securities of the company
for allotment and subscription. This issuance will be subject to any restriction imposed from time to
time by the Securities and Exchange Commission.

3. The issue manager of the company will conduct an open lottery of all the applications jointly
which will be received under each category separately according to the sub–rule 1(A), 1(B) and
1(C).

48
4. The unsubscribed portion of the shares should be added to the general public category in terms
of the 10% categories mentioned in sub–rule 1(A) and 1(B). And the issuer of the securities and the
issue managers will conduct an open lottery jointly of all the applicants. And it will happen only if
there is over subscription in the general public category.

5. The underwriters of the securities will take the unsubscribed portion of securities in case of under
subscription of the public offering.
6. The representatives of the issuer of the securities, the applicants and the Stock Exchange should
be presented in time of conducting the lottery as mentioned in clause –3 and 4.

Allotment of the shares:

By accepting any application, either in whole, or in part, BANGAS reserves the right of the
successful applicants and this reserved right will be notified by the dispatch on an allotment letter
which will be sent by registered post/courier. Within 5(five) weeks from the closing of the
subscription, letter of allotment and refund warrants will be issued by the company. The company
will have to transfer the shares to the allotees’ Beneficiary Owners (BO) account after the allotment
it should have been mentioned in the application form.

Within 5(five) weeks from the date of the subscription closing date, the company will issue share
allotment letter to all successful applicants. The unsuccessful applications will be refunded with the
application money within 5 (five) weeks from the closing of the subscription date at the same time.
This money will be conducted by Account Payee Cheque, without interest payable at
Dhaka/Chittagong/Khulna/Rajshahi/ Barisal/Sylhet as the case may be.
The allotment letter will be dispatched to the person whose name appears first in the application
form and it should be in the place where allotment is made, in whole or in part in respect of joint
application. The allotment will be notwithstanding with the fact that the shares have been allotted
to the joint applicants. The balance of any amount which is paid on application, will be refunded
without interest to the person whose name will be appeared in the application form at first and where
joint applicant is accepted in part.

49
Application for subscription:

1. Application for shares is made for a minimum lot for 200 ordinary shares to the value of Tk. 100
and should be made on the company’s Printed Application Forms. The issuer should collect
application Forms and Prospectus from the Registered Office of the Company, members of Dhaka
Stock Exchange Limited, Chittagong Stock Exchange Limited, or from the Bankers to the issue.
Applicants may use photocopied/ handwritten/cyclostyled/typed copies of the Forms if adequate
Forms are not available. Applications must apply for at least 200 units of share. If any application
does not meet this criterion, will not be considered for allotment purpose.

2. In the case of joint application, form for more than two (2) persons will not be accepted. Each
party of the joint application must sign the application form.

3. Application must contain full name of individuals, or limited companies, or trusts or societies.
The name of any minor or persons of unsound mind, will not be accepted. Applications from of
financial and market intermediary companies and insurance companies must be accompanied by
Memorandum and Articles of Association of that company.

4. One applicant cannot submit more than two applications at a time, one in his own name and
another jointly with another person. All the applications will be treated as invalid and will not be
considered for allotment purpose if an applicant makes more than two applications. In this case, the
Commission will forfeit the whole or part of the application money.

5. Bangladeshi Nationals and foreign nationals shall be entitled to apply for the share.

6. Payment for subscription may be made to the said branches/offices of the banks by investors
mentioned in the application forms in Cash/Cheque/ Pay Order/Bank Draft and this payment is not
for Non-Resident Bangladeshi. The Cheque/ Pay Order/ Bank Draft shall be made payable to the
bank to which it is sent and it will be marked as “BANGAS” shall bear the crossing “A/C Payee
Only” and it must be drawn on a bank in the same town of the bank to which application form is
deposited.

50
7. All completed application forms together with remittances for the full amount which are payable
on application, shall be lodged by investors other than Non-Resident Bangladeshis with any of the
branches of the Bankers to the Issue.

Underwriting of securities:
Securities and Exchange Commission has a rule on share distribution Rule 14(1) of the SEC, Public
Issue Rules, 2006. According to this rule, Issuer Company’s board of directors appoints underwriters
to carry out the underwriting functions on a firm commitment basis.
Our selected company Bombay Sweets & Co. has appointed underwriters to carry out the following
activities according the Rule 14(1) of the SEC, (Public Issue) rules, 2006. Bombay sweets
company’s IPO will be offered for 1500000 shares @ TK. 12 each (including premium of 2tk per
share) and the total amount is Tk. 18000000/-. 50% of the total shares will be underwritten.

Sl. No. Name and Address Number of Lots Issue Price

of underwriters underwritten Amount(TK.)
1. CAPM Advisory 300000 3600000
Limited
2. Trust Bank 120000 1440000
Investment Limited

3. Prime Finance and 330000 3960000

Investment Limited
750000 9000000

Principal terms and conditions of underwriting agreement

1. If and to the extent that the Shares offered to the public by a Prospectus authorized hereunder
shall not have been subscribed and paid for in cash in full by the closing date, the Company shall
within 10 (ten) days of the closure of subscription call upon the underwriter in writing with a copy
of said writing to the Securities and Exchange Commission, to subscribe for the Shares not

51
subscribed by the closing date and to pay for in cash in full for such unsubscribed Shares within
15(fifteen) days of the date of said notice and the said amount shall have to be credited
into Shares subscription account within the said period.
2. If payment is made by Cheque/Bank Draft by an underwriter it will be deemed that the
underwriter has not fulfilled his obligation towards his underwriting commitment under the
Agreement, until such time as the Cheque/Bank Draft has been en-cashed and the Company’s
account credited.
3. In any case within 7 (seven) days after the expiry of the aforesaid 15(fifteen) days, the Company
shall send proof of subscription and payment by the underwriter to the Commission.
4. In the case of failure by the underwriter to pay for the Shares under the terms mentioned above,
the said Underwriter will not be eligible to underwrite any issue, until such time as he fulfils his
underwriting commitment under the Agreement and also other penalties as may be determined by
the Commission may be imposed on him.
5. In case of failure by any underwriter to pay for the Shares within the stipulated time, the
Company/Issuer will be under no obligation to pay any underwriting commission under the
Agreement.
6. In case of failure by the Company to call upon the underwriter for the aforementioned purpose
within the stipulated time, the Company and its Directors shall individually and collectively be held
responsible for the consequence and/or penalties as determined by the Securities and Exchange
Commission under the law as may be imposed on them.

Underwriter’s right to represent in the Board of Directors of the Company:

The Underwriters shall not have any right to have any representatives in the Company’s Board of
Directors.
Commission for Underwriters: The Company should pay to the underwriters an underwriting
commission at the rate of 0.5% of whole Public Offering amount of the issue value of shares.
Right of Underwriters on Company’s Board: Underwriters have not acquired any right to have
their representatives in the Board of Directors of the Company.

Officer or director of the underwriters acting as director of the company: No officer or director
of the underwriters acting as director of the company.

52
53
 Section 8:
Material Contract

54
MATERIAL CONTRACTS
 Underwriting Agreement between the Company and the Underwriters.
 Issue Management Agreement between the Company and Alliance Financial Services
Limited (AFSL).
 Underwriting Agreements between the Company and the Underwriters.
 Issue Management Agreement between the Company and ICB Capital Management
Limited.
 Contract between the company and the credit rating agency
 The copies of the aforementioned contracts and documents and a copy of Memorandum of
Association and Articles of Association of the Company and the Consent Order from BSEC
may be inspected, on any working day, during office hours, at the Registered Office of the
Company and the Issue Manager.

Copies of the aforementioned contracts and documents and a copy of Memorandum and Articles of
Association of the Company and the Consent Order from the Securities and Exchange Commission
may be inspected on any working day during office hours at the Office of the Company and the
manager to the issue.

Manager to the Issue: Alliance Financial Services Limited, Rahman Chamber (3rd Floor) 12-13
Motijheel C/A, Dhaka-1000 is the Manager to the Issue. The Issue Manager will get Tk. 2,000,000/-
as issue management fee.

Commission to the Bankers to the Issue: Commission at the rate of 0.20% of the amount collected
will be paid to the Bankers to the Issue for the services to be rendered by them.

55
 Section 9
Independent Auditor Reports

56
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF BANGAS

We have audited the ac-companying Balance Sheet of BANGAS as of 30 June

2017 and the related Income Statement, cash Flow Statement' statement of changes in Equity and
Notes to the Financial statements for the period then ended. The preparation of these financial
statements is the responsibility of the company's management. Our responsibility is to express an
independent opinion on these financial statements based on our audit.

We conducted our audit in accordance with Bangladesh standards on Auditing (BSA). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidences supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by the
management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, the financial statements of the company along with the notes thereon, prepared in
accordance with Bangladesh accounting- standards (BAS), and Bangladesh Financial Reporting
Standards (BFRS) give a true and fair view of the state of the company's affairs as of 30 June 2016
and of the results of its operations and cash flows for the period then ended and comply with
applicable sections of the Companies Act, 1994 and other applicable laws and regulations.

We report that:

(a) We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit and made due verification thereof;

(b) In our opinion, proper books of account as required by law have been kept by it appeared
from our examination of those books;

57
(c) The company's balance sheet and income statement dealt with by the report are in agreement
with the books of account.

Sd/-
Saleh Uddin
Chartered Accountants
Place: Dhaka
Date: 1 July 2018

58
 BANGAS
Balance Sheet
As at 30 June 2017

Sd/- Sd/-
Chairman Managing Director

As per our annexed report of same date.

Sd/-

Place: Dhaka Saleh Uddin

Date: 1 June 2018 CHARTERED ACCOUNTANTS

59
 BANGAS
Income Statement
For the period ended at 30 June 2017

Sd/
Chairman Sd/

As per our annexed report of same date. Saleh Uddin

Chartered Accounted
Dated: 1 July 2018
Place: Dhaka

60
 Section: 10
Application Form

61
 Bangas Limited
Application form

APPLICATION FOR SHARES BY INVESTORS OTHER THAN NON-RESIDENT

BANGLADESHI(S)

Warning: Please read the instructions at the back of this form. Incorrectly filled applications may
be rejected.

The Managing Director

Bangas Limited
House-37, Road-90
Gulshan-2, Dhaka

I/we apply for and request you to allot me/us the ……….number of Shares and I/we agree to accept
the same or any smaller number that may be allotted to me/us upon the terms of the Company’s
approved Prospectus and subject to the Memorandum and Articles of Association of the Company.
Further, I/we authorize you to place my/our name(s) on the Register of Members of the Company
and deposit the said shares to my BO (Beneficiary Owner) Account and/or a Crossed (Account
Payee only) Cheque in respect of any application money refundable by post/courier at my/our risk
to the first applicant’s address stated below:-

1. No. of Ordinary Shares……………………………………………… of Tk……....................

each
2. Amount of Tk(in figure), ………………..., Taka (in words)…..........................only
deposited vide Cash/Cheque/Draft/Pay Order
No…….…………....Dated……...............………on……………..Bank………..…….……
…….…Brach…………………

62
 3. Depository (B/O) Account
Number…………………………………………………………………
4. (If you do not mention your valid BO (Beneficiary Owners) account, your application will
be treated as invalid)
5. I/we agree to fully abide by the instruction given herein.
6. Particulars of Applicant(s).
Sole/First Applicant
Name:
Father’s /Husband’s name:
Mother’s name:
Postal address:
Occupation:
Nationality:
For refund warrant (Application will not be treated as valid if anyone uses a non-scheduled
bank. To avoid this complication, investors are requested not to use the name of any non-
scheduled bank) Please write the correct and full name of bank and branch:
For refund purpose: I/we want refund through  Bank account*  Hand delivery/ Courier
(Please put marks in which refund will be made)
Name of the Bank: Branch:
The applicant shall provide with the same bank account number in the application form as it is in
the B O account of the applicant. Otherwise the application will be considered invalid and the
subscription money may be forfeited.

Second Applicant
Name:
Father’s /Husband’s name:
Mother’s name:
Postal address:
Occupation: Nationality:

63
 1. I/we hereby declare that I/we have read the Prospectus of ‘Bangas Limited’, and have
willingly subscribed for ………no of shares of Tk........................ Per share on this form.
2. Specimen Signature(s):
Name (in block letters) Signature:

(ii)Name (in block letters) Signature:

*In case of deposit into the applicant’s bank account, the applicant will bear the applicable
charge, if any, of the applicants banker, and the issuer shall simultaneously issue a letter of
intimation to the applicant containing, among others, the date and amount remitted with details
of the bank through and to which bank such remittance has been effected.

BANK’S ACKNOWLEDGMENT

Certified that this bank has received Tk………..……………..…….(in

word)………...........................................................………………………….……………….. only
from Mr./Mrs./Ms.…………………………………….………..being the Application Money for
………………..nos. Ordinary Shares of Bombay Sweets Limited.

Banker’s Sl. No. Seal and Date Authorized Signature

(Name & Designation)

64
Conclusion
Prospectus is like a Bible for the stakeholders of company including investors, shareholders,
investment banks, issue managers, SEC authorities, company management etc. Two major types of
prospectus are made by a company such as Preliminary prospectus or Red Herring and Final
prospectus. Each type of prospectus is of great importance to the parties related to them.
We have concluded our prospectus by adding Auditors report and related certificates, Auditors
report to the shareholder, Statement of financial position, Statement of Profit or Loss, Changes in
equity and finally an Application Form. Moreover, prospectus plays an important role in attracting
potential investors to invest in the particular company.

65
 Bibliography
1. www.bangasbd.com
2. www.lankabangla.com
3. www.ipdc.com

66
67
1