BPPL Holdings announces Rs. 368 m IPO

BPPL Holdings Board of Directors, from left: Executive Director B.D. Prasad Devapriya Perera, Executive Director and CFO Vaithilingam Selvaraj, Ranil Prasad Pathirana - Independent Non-Executive Director (INED), Chairman Sarath Dayantha Amarasinghe, Managing Director Dr. Anush Amarasinghe, Sharmini Tamara Ratwatte (INED), Manjula De Silva (INED) and Savantha De Saram (INED) - Pic by Ruwan Walpola

One of the largest backwardly integrated brushware manufacturing facilities in South-East Asia, BPPL Holdings Ltd. (BPPL) is set to raise Rs. 368,220,000 through an Initial Public Offering (IPO) of 30,685,000 shares priced at Rs. 12.00 per share representing a 10% stake in the company. At the issue price, market capitalisation is Rs. 3.7 billion.

The offer will be a sell down of shares from Hirdaramani Investment Holdings Ltd., which will lower its ownership in BPPL to 13.4% from 23.4%. Infinity Capital Ltd. and LOLC Investments Ltd. will retain their 50.3% and 26.3% shareholdings respectively in the company.

The current shareholders will remain locked in for a minimum of 12 months from the initial listing.

The IPO will also broad-base ownership of the privately held business that has grown exponentially over the years.

The Issue will open on 7 March 2017 and will close on 24 March 2017 unless oversubscribed prior to the closing date.

CT CLSA Capital Ltd. is the Financial Advisor and Manager to the Issue. The Prospectus and application forms will be available from 21 February 2017.

Commenting on the IPO, BPPL Chief Executive Officer Dr. Anush Amarasinghe said: “We have ambitious plans chalked out for BPPL and are well on our way to achieving them. This IPO presents an exceptional investment opportunity for the public as we are well positioned to achieve tremendous growth through future strategic expansion activities. As we pledge to boldly push horizons in our quest for perfection, this IPO is also an affirmation of our conviction to do things better and in a responsible manner.”

BPPL is the parent company of the Beira Group of Companies. It was established in 1991 following the transfer of activities from Interbrush Lanka Ltd, which was founded in 1984. Beira Brush Ltd. and Beira Enviro Solutions Ltd. are subsidiary companies of BPPL Holdings Ltd.

BPPL manufactures environmentally-friendly cleaning products for the professional, commercial and household markets. The company operates four state-of-the-art factories and warehouses.

Operating in a niche segment, BPPL is a supplier to leading global brands such as Oates, Grainger and Rubbermaid.

The company enjoys a strong track record as a high quality brushware and filament supplier to the US, Canadian and Australasian markets and is well-positioned to diversify with its own brands within the South-East Asian region. The company’s own ‘Tip Top’ and ‘JAB’ brands of household cleaning tools are currently successfully marketed in Sri Lanka and Indonesia respectively.

Poised at the forefront of filament technology and leveraging its expertise, BPPL also recently invested in a polyester yarn extrusion plant for Sri Lanka’s fabric manufacturing industry. The plant is expected to contribute to company revenue from FY19 onwards.

“As a company, we are constantly thinking about how we could do things better, more responsibly, in a meaningful manner, adding value not only to our customers but also to Sri Lanka’s knowledge base. As our nation marches towards prosperity, we aim to be proudly positioned among the top local companies and showcase our talent and skills to the world,” Amarasinghe noted.

In the financial year ending 31 March 2016, the group recorded revenue of Rs. 2.1 billion and a net profit of Rs. 306.9 million.

Additionally, group revenue and net profit in the nine months ending 31 December 2016 were Rs. 1.8 billion and Rs. 297.4 million respectively, an increase of 21% and 50% over the corresponding period in the previous year.

Established as a limited liability company in 1991 following the transfer of activities from Interbrush Lanka Ltd, which was founded in 1984, the company manufactures a range of high quality, durable cleaning products for both professional and household applications. Leveraging on its sustainable manufacturing and vertically integrated processes, coupled with commitment to consistent quality, on-time delivery, reasonable pricing and flexibility allows it to supply to major distributors and retailers of cleaning tools worldwide.