The stock market regulator yesterday gave a go-ahead to the Tk 400 crore bond of Trust Bank and the initial public offering (IPO) of Index Agro Industries that will raise a fund of Tk 50 crore.

The permissions came from a meeting of Bangladesh Securities and Exchange Commission (BSEC) held at the commission building in the capital chaired by BSEC Chairman Prof Shibli Rubayat Ul Islam.

When a company raises fund over its face value, then it adopts the book building method and institutional investors set a cut-off price by bidding.

Index Agro will issue 82.53 lakh shares through book building method.

Of the total shares, 38.93 lakh would be issued to eligible investors at their bidding price.

Rest of the shares would be issued to general investors at Tk 50, after considering 20 per cent discount on the cut-off price of Tk 62.

With the IPO proceeds, the agro based company will construct a building and buy machinery.

Its weighted average earnings per share stood at Tk 7.07 at the end of June 30, 2019, according to the BSEC's press release.

AFC Capital Ltd and EBL Investments is the issue manager of the company.

On the other hand, the Trust Bank's unsecured non-convertible floating rate subordinate bond would be issued to financial institutions, mutual funds and eligible investors through private placement.

With the bond proceeds, the lender will strengthen its additional Tier-II capital base.

Face value of each bond is Tk 1 crore.

Green Delta Insurance is the trustee of the bond while Standard Chartered Bangladesh is the mandated lead arranger.