NAVANA REAL ESTATE LIMITED - Dhaka Stock Exchange

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Issuer: Navana Real Estate LimitedIssue Manager: ICB Capital Management LimitedManagement Perception:Management is fully aware of this market risk; and has planned to act accordingly. On theother hand, strong marketing and brand management would help the company increase theircustomer base.Potential or Existing Government RegulationsThe Company operates under the Companies Act, 1994, Real Estate Development andManagement Act, 2010; Dhaka Metropolitan Construction Rules, 2006; Income TaxOrdinance 1984, Customs Act, 1969, Value Added Tax (VAT) Act 1991 and rules, regulationsand notifications made under these laws. Any abrupt changes of the policies made by theregulatory authorities may adversely affect the business of the Company. NREL operates in ahighly regulated market with registration, plan approvals and inspections required by RAJUKperiodically.Management Perception:NREL is the one of the leading real estate developers of the country. This company is doingbusiness following all laws, rules and regulations. Changes in regulatory framework will bringchanged strategies of doing business by the dynamic management of the Company.Potential changes in global or national policiesPolitical instability and the associated deterioration of law and order stand in the way oftimely implementation of the projects.Management PerceptionManagement is optimistic about growth opportunities in Bangladesh. They believe they targetan untapped market of customers who are seeking quality service, reliability and timelinesswith their management team.Operational riskThe real estate industry has witnessed challenges such as earthquakes and floods. It standsas one of the most challenging industries to operate in to date.Management PerceptionFortunately, the local industry does not have such a troubled backdrop and has immenseopportunities for growth.FINANCIAL STRUCTURE OF THE COMPANYThe Financial Structure of the Company is as follows:ParticularsPage- 4No ofSharesFace Value(Taka)Amount inTakaBefore IPO:Authorized Capital 1,000,000 1,000 1,000,000,000Paid up capital as on 31 August, 2010 300,000 1,000 300,000,000Paid up capital as on 30 September, 2010 30,000,000 10 300,000,000Total paid up capital before IPO 30,000,000 10 300,000,000After IPO:To be issued as IPO 30,000,000 10 300,000,000Paid up capital (Post IPO) 60,000,000 10 600,000,000
Issuer: Navana Real Estate LimitedIssue Manager: ICB Capital Management Limited* Board of Directors had decided to denominate the share price from Tk.1000.00 to Tk. 10.00on 12 th August 2010 which has been approved by the shareholder of the Company in their ExtraOrdinary General Meeting dated 8 th September 2010.Capital StructureParticulars as at 31 August 2010 as at 31 August 2009Shareholders’ Equity:Share Capital 300,000,000 51,000,000Retained Earnings 881,924,935 408,218,519Total 1,181,924,935 459,218,519Debts:Long-term loan 457,557,539 490,771,249Short-term loan 1,483,279,899 996,801,968Total 1,940,837,438 1,487,573,217Use of proceedsThe Company is planning to raise about Tk. 420.00 crore from the capital market throughIPO. The IPO proceeds will be utilized in the following manner:Sl. No. Usage of Proceeds Amount (Taka)1 Repayment of Loans 2,000,000,0002 Acquisition of Investment Properties 750,000,0003 Balance as Working Capital 1,450,000,000Total 4,200,000,0001. Repayment of Loans of Tk. 200.00 croreNREL will repay the entire loans from banks and financial institutions aggregating around Tk200 crore out of its IPO proceeds immediately upon completion of IPO formalities subject tothe approval of Securities & Exchange Commission. This will improve NREL’s profitability,making it debt-free. The details of Loan taken from Financial Institution are stated below (asper Audited Accounts):Sl. No.Financial InstitutionLoan amount(In Taka)1.00 Long-term borrowings:1.01 City Bank Ltd. 83,912,9231.02 Delta Brac Housing Ltd. 30,638,9711.03 Dhaka Bank Ltd. 50,000,0001.04 Pubali Bank Ltd. 5,838,5151.05 Southeast Bank Ltd. 175,900,0491.06 United Commercial Bank Ltd. 136,571,8452.00 Lease finance:2.01 Dhaka Bank Ltd. 13,557,1262.02 Dutch Bangla Bank Ltd. 1,604,5652.03 EXIM Bank Ltd. 91,070,8432.04 Standard Bank Ltd. 9,165,4833.00 Short-term loan:3.01 Al-Arafah Islami Bank Ltd. 53,807,5003.02 Bank Alfalah Ltd. 49,600,0003.03 Bank Asia, Pr. 215,000,0003.04 EXIM Bank Ltd. 71,971,667Page- 5
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NAVANA REAL ESTATE LIMITED - Dhaka Stock Exchange

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