presentation on ipo of ifad autos ltd

1

Presentation on

Initial Public Offering

of

IFAD AUTOS LIMITED

28 January 2015

2 2015 Prime Finance Capital Management Limited. All rights reserved

Contents

Introduction & Background

Board & Management

Products & Services

Major Competitors & Market Share

Financial Performance

Behavior Analysis of newly listed shares


Introduction & Background

� IFAD Autos Limited is an importer & seller of Automobiles (Vehicles) in

Bangladesh

� The Company was incorporated in February 1988 as Private Limited

company

� It converted into Public Limited company in September 2011

� There are 25 authorized Distributors of IFAD Autos Limited for selling its

products

� Besides, IFAD Autos Ltd. sells its products directly to Corporate

Customers


Board & Management


Board of Directors:

Name (% of shareholding)* Designation Age Qualification Experience

Iftekhar Ahmed Tipu (33.42) Chairman 64 Years B.A 42 Years

Taskeen Ahmed (7.34) Managing Director 34 Years BBA(IUB) 13 Years

Tanveer Ahmed (7.34) Director 35 Years Bachelor of

Architecture, USA

14 Years

Nilufar Ahmed (8.15) Director 57 Years MA (DU) 26 Years

Tashfeen Ahmed (6.52) Director 28 Years MBA, USA 4 Years

*shareholding percentage has been calculated based on post IPO paid up capital.


Critical Observation:

� The BOD holds 62.77% of the total Post IPO capital

� IFAD Autos is absolutely a FAMILY business

� The BOD consists of Mr. Tipu, his spouse and three sons.

� Only 21,250,000 (22.5%) ordinary shares will be floating for general investors

� Out of floating shares, 10% of the said shares are hold by Asset Management

Companies in the name of mutual funds

� Total Number of shareholders of IFAD Autos before IPO was 33

� Approximately 1.006 Crore ordinary shares will be free from lock-in on 01 Oct 2015


Top five salaried employees:

Sl. Name Designation Salary/annum

01. Abu Sayeed Ahmed, FCA Chief Financial Officer 12,00,000

02. Uttiya Bakshi Abir Director, Administration & Corporate Sales 11,90,700

03. Arif Masud Chowdhury Assistant Director, Sales 11,24,550

04. Golam Saklaen Miah Deputy General Manager, Finance 9,89,400

05. Golam Mostafa General Manager, Recovery 8,04,000


Products & Services


Products Line

Importing,

Marketing &

Body Building

of

Ashok Leyland’

AC Buses & Deluxe Buses

Goods & Dump Trucks

Prime Movers

� Products are SOLELY sold in Local market

� No SINGLE customer provides 10% or more revenue

� So business is NOT dependent on any single client rather retail market

10

Market Share & Major Competitors

40%

10%

12%

2015 Prime Finance Capital Management Limited. All rights reserved

Market Share & Major Competitors

38%

IFAD Autos Ltd.

Nitol Motors Ltd.

Runner Motors Ltd.

Others

Prime Finance Capital Management Limited. All rights reserved

IFAD Autos Ltd.

Nitol Motors Ltd.

Runner Motors Ltd.


Financial Performance


� Net Asset Value (NAV) per share with revaluation reserve as on 30 Jun 14

Tk. 44.12

� NAV per share without revaluation reserve as on 30 Jun 14 Tk. 27.29

� Weighted average EPS for the last five years (Jun 09-Jun 13) is Tk. 3.83

� EPS for the year ended on 30 Jun 14 is Tk. 5.16

� Half yearly EPS is yet to be disclosed. Hopefully on first trading day, it will be

disclosed.


Behavior Analysis of Newly Listed shares


Price behavior on opening day

Date Trading Code Offer Price

Openp Closep Price Change Dsex Index Index Change

21-Jan-15 CNATEX 10 21.1 22 0.90 4,783.21 -73.74

19-Jan-15 NFML 10 44.9 42.5 (2.40) 4,867.08 -50.29

4-Dec-14 HFL 35 60.1 56.1 (4.00) 4,961.85 -30.15

18-Nov-14 KBPPWBIL 10 47 76.6 29.60 4,898.82 -18.61

2-Nov-14 WMSHIPYARD 35 50 62.7 12.70 5,105.22 -68.01

29-Sep-14 SAIFPOWER 30 60.1 71.4 11.30 5,050.35 -21.85

22-Sep-14 RSRMSTEEL 40 70 77.3 7.30 4,924.53 11.29

*Green fill cell indicates upward trend of price whereas light red fill cell indicates downward trend of price.


Price behavior in 5 trading days since trading day

DATE Company Name OPENP CLOSEP Price Change DSEX Index Index Change

27-Jan-15 CNATEX 24.30 24.00 (0.70) 4,757.10 48.77

26-Jan-15 CNATEX 26.50 24.70 (1.40) 4,708.33 -8.43

25-Jan-15 CNATEX 24.60 26.10 (0.10) 4,716.76 -81.19

22-Jan-15 CNATEX 22.10 26.20 4.20 4,797.96 14.74

21-Jan-15 CNATEX 21.10 22.00 4,783.21 -73.74

25-Jan-15 NFML 37.00 34.50 (2.50) 4,716.76 -81.19

22-Jan-15 NFML 34.00 37.00 2.60 4,797.96 14.74

21-Jan-15 NFML 37.30 34.40 (4.10) 4,783.21 -73.74

20-Jan-15 NFML 42.50 38.50 (4.00) 4,856.95 -10.14

19-Jan-15 NFML 44.90 42.50 4,867.08 -50.29

10-Dec-14 HFL 51.00 46.60 (3.80) 4,943.73 -0.31

9-Dec-14 HFL 53.90 50.40 (3.30) 4,944.03 13.21

8-Dec-14 HFL 56.80 53.70 (2.20) 4,930.82 0.45

7-Dec-14 HFL 55.00 55.90 (0.20) 4,930.37 -31.48

4-Dec-14 HFL 60.10 56.10 4,961.85 -30.15

24-Nov-14 KBPPWBIL 51.50 53.50 0.70 4,768.90 -69.21

23-Nov-14 KBPPWBIL 59.00 52.80 (6.00) 4,838.11 -61.50

20-Nov-14 KBPPWBIL 56.20 58.80 (5.00) 4,899.61 -26.63

19-Nov-14 KBPPWBIL 78.10 63.80 (12.80) 4,926.24 27.42

18-Nov-14 KBPPWBIL 47.00 76.60 4,898.82 -18.61

*Green fill cell indicates upward trend of price whereas light red fill cell indicates downward trend of price.


DATE Company Name OPENP CLOSEP Price Change DSEX Index Index Change

9-Nov-14 WMSHIPYARD 83.00 91.30 9.20 4,938.65 -86.45

6-Nov-14 WMSHIPYARD 75.00 82.10 9.40 5,025.10 7.88

5-Nov-14 WMSHIPYARD 66.50 72.70 5.40 5,017.22 -47.92

3-Nov-14 WMSHIPYARD 66.00 67.30 4.60 5,065.14 -40.08

2-Nov-14 WMSHIPYARD 50.00 62.70 5,105.22 -68.01

12-Oct-14 SAIFPOWER 63.50 59.40 (2.10) 5,334.04 96.32

2-Oct-14 SAIFPOWER 56.20 61.50 4.20 5,237.72 84.45

1-Oct-14 SAIFPOWER 64.60 57.30 (7.20) 5,153.27 78.96

30-Sep-14 SAIFPOWER 68.00 64.50 (6.90) 5,074.31 23.96

29-Sep-14 SAIFPOWER 60.10 71.40 5,050.35 -21.85

28-Sep-14 RSRMSTEEL 84.90 78.00 (6.90) 5,072.20 45.27

25-Sep-14 RSRMSTEEL 88.00 84.90 (1.20) 5,026.93 47.20

24-Sep-14 RSRMSTEEL 74.80 86.10 11.30 4,979.72 12.61

23-Sep-14 RSRMSTEEL 77.30 74.80 (2.50) 4,967.11 42.59

22-Sep-14 RSRMSTEEL 70.00 77.30 4,924.53 11.29

*Green fill cell indicates upward trend of price whereas light red fill indicates downward trend of price.


Price Change of newly listed companies since listing

First Trading Date Name of Shares First Day's CLOSEP CLOSEP on 28 Jan 15 Price Change

21-Jan-15 CNATEX 22.00 25.20 3.20

19-Jan-15 NFML 42.50 32.30 (10.20)

4-Dec-14 HFL 56.10 31.70 (24.40)

18-Nov-14 KBPPWBIL 76.60 28.70 (47.90)

2-Nov-14 WMSHIPYARD 62.70 49.60 (13.10)

29-Sep-14 SAIFPOWER 71.40 68.80 (2.60)

22-Sep-14 RSRMSTEEL 77.30 55.00 (22.30)

*Green fill cell indicates upward trend of price whereas light red fill indicates downward trend of price.


Disclaimer:

This Document has been prepared and issued by Prime Finance Capital Management Limited on the basis of the public

information available in the market, internally developed data and other sources believed to be reliable. Whilst all

reasonable care has been taken to ensure that the facts & information stated in the Document are accurate as on the date

mentioned herein. Neither Prime Finance Capital Management Limited nor any of its director, shareholder, and member

of the management or employee represents or warrants expressly or impliedly that the information or data of the sources

used in the Document are genuine, accurate, complete, authentic and correct. Moreover, none of the director or

shareholder, and member of the management or employee in any way is responsible about the genuineness, accuracy,

completeness, authenticity and correctness of the contents of the sources that are publicly available to prepare the

Document. It does not solicit any action based on the materials contained herein and should not be construed as an offer or

solicitation to buy sell or subscribe to any security. If any person takes any action relying on this Document, shall be

responsible solely by himself/herself/themselves for the consequences thereof and any claim or demand for such

consequences shall be rejected by Prime Finance Capital Management Limited or by any court of law.


Thank You

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