Share price of Bashundhara Paper Mills Limited jumped 63 per cent on debut trading on Monday despite the capital market witnessed sharp decline.
The company's shares, which were offered for Tk 80 under the book-building method, hovered between Tk 129.40 and Tk 155, before closing at Tk 130.40 each on the Dhaka bourse.
The company was also the most traded stock on the Dhaka Stock Exchange (DSE) with 6.31 million shares worth Tk 886.58 million changing hands.
In the Chittagong Stock Exchange (CSE), each share of the company closed at Tk 127.20, soaring 59 per cent from its issue price of Tk 80 each.
Bashundhara Paper also clinched the top spot in the turnover chart at the port city's bourse with 1.50 million shares worth Tk 205 million changing hands.
Market insiders said the investors showed enthusiasm for the stock amid short-term speculation. So, it created hype among the investors on the first day of trading.
Bashundhara Paper Mills, a concern of the country's leading business conglomerate, Bashundhara Group, raised a capital worth Tk 2.0 billion by floating more than 26 million ordinary shares under the book-building method.
The IPO fund will be used to purchase machineries of about Tk 1.35 billion, repay bank loans of about Tk 600 million and bear the IPO expenses of about Tk 50 million.
The company's (un-audited) net profit after tax stood at Tk 321.76 million in the nine months for the period from July, 2017 to March, 2018.
The post-IPO EPS stood at Tk 1.85 for the period from July, 2017 to March, 2018. The net asset value (NAV) per share was Tk 34.07 as of March 31, 2018.
The company's paid-up capital is 1.73 billion, authorised capital is Tk 5.0 billion and the total number of securities is 173.79 million.
Sponsor-directors own 66.14 per cent stake in the company while institutional investors 8.99 per cent and the general public 24.87 per cent as on June 30, 2017, the DSE data shows.
The Bashundhara Paper Mills produces different types of papers and paper products.