LAHORE: Mega Conglomerate Private Limited (MCPL) Chairman Habibullah Khan, in an interview with Profit recently, announced his plans to launch a Mega bond.
The bond is expected to be priced at Rs10 initially. “I will ask people to invest Rs10 in that bond so that in five years, that Rs10 is worth Rs1 million… so (people) can educate their children, get them married, buy a house,” he said.
The Mega conglomerate chairman plans to do something similar to what India’s Dhirubhai Ambani did a few years back in Reliance when it raised a total of Indian Rs20 billion by selling corporate bonds. The Infocomm company used the proceeds from the sales to launch a digital services business in India.
The Bombay Stock Exchange (BSE) received bids amounting to a record Indian Rs37 billion during the issuance of the five-year maturity bonds with a cut-off yield of 8.32 percent. The bonds had an issue size of Indian Rs15 billion and an oversubscription option of Indian Rs20 billion.
MCPL is a Pakistan based diversified business conglomerate which has undergone rapid advancement since its inception with investments mainly focused in the country’s dairy and real estate sectors.
Pardon me for such a naive question. How does one subscribe to this bond when its launched.
It will be issued via cdc access I assume you can subscribe it
You need to have a cdc investor account or sub account to take part in the ipo
So in 5 years, Rs 10 will grow by 1 lac times to 1,000,000 if one invest in Mega company’s bonds? Does not make sense at any level.
First of all it’s investment in bonds, not shares. So 10 Rupee bond even if launched at 10% return will only grow to 20 Rupee by the end of 5 years, if interest is compounded… or can give 1 rupee each year for 5 years and then Rs 10 is returned after 5 years.
Even if it was shares, on which planet a share worth Rs 10 per share can grow to Rs 1 million per share, even if the company has unbelievable growth? Mr. Habibullah seems to be selling fake news by asking people to daydream with his rags to riches narrative.
I am not buying this story ! “Scam Alert ” it cant be worth more than Apple 😀