URO Agrovet Limited, a company specialising in agro-based feed and medicine production, plans to raise Tk10 crore through an initial qualified investor offer (IQIO) from the capital market. The funds will be used to support the company's expansion efforts.

The company has applied to the Bangladesh Securities and Exchange Commission (BSEC) to issue 1 crore ordinary shares at a face value of Tk10 each.

Under its business expansion plan, the firm intends to allocate Tk10 lakh for land development, Tk7.65 crore for purchasing plant and machinery, Tk2 crore for building and construction, and Tk25 lakh for IQIO expenses.


UCB investment Limited is working as the issue manager for the company.

URO Agrovet Limited is a manufacturer and supplier of ready-to-use dairy feed products, feed supplements, and livestock medicine in Bangladesh. 


The company has two factories in Khulna and Feni. It produces various types of dairy feeds under the brand name HYTOP FEED at its Khulna unit. It also produces feed products, feed supplements, vitamins, and minerals in liquid, powder, and herbal forms at its Feni unit.

Md Dalour Hossen Khan, executive director of Business Operations at URO Agrovet Limited, told TBS that the company previously produced products for select areas of the country. Now, it creates and supplies products nationwide through a new, strong distribution channel.


He said demand for URO Agrovet products is increasing rapidly due to their high quality in a competitive market, and the management wants to take full advantage of this opportunity.


The company aims to raise funds from the capital market to expand and meet the growing demand. If successful, URO Agrovet's production capacity will more than double, significantly boosting the company's revenue, he added.

The company's revenue is as follows: 58.01% from ready feed, 29.54% from feed additives, and 12.45% from medicine products.


URO Agrovet Limited has its own distribution network to distribute products nationwide. All products produced in the factory are distributed to customers through dealers and retailers.

The major competitors in the animal health division include Square Pharmaceuticals, Renata, Incepta, and SKF Pharmaceuticals Ltd. In the dairy feed division, competitors are ACI Godrej Agrovet, Paragon Poultry, Nourish Poultry, Kazi Farms, Index Agro, and Nabil Poultry Ltd.

Md Abu Bakar Siddique is the managing director of URO Agrovet Limited. He holds a Master of Social Sciences degree in Economics and has 23 years of experience in the agro-based business sector. 

Abu Bakar started his journey by founding the Social & Environment Development Organization (SEDO), a government-registered organisation. Additionally, he serves as the Chairman of URO Printing & Packaging, URO Software & Design, and URO International Ltd.

In the first six months of the current fiscal year, the company made revenue of Tk27.84 crore, down from Tk28.17 crore in the same period the previous year.

Its profit after tax stood at Tk2.75 crore, a 12% increase from Tk2.46 crore in the same period the previous year.

Its earnings per share was Tk0.80 and its net asset value per share stood at Tk12.80 at the end of December 2023.

Its authorised capital is Tk100 crore, while its paid-up capital stood at Tk33.69 crore. 


Source: The Business Standard