Indo-Bangla Pharma IPO subscription begins today

FT ONLINE

The IPO subscription of Indo-Bangla Pharmaceuticals Limited starts today (Sunday) and will end on July 26, following the withdrawal of the High Court's (HC) stay order in this regard.

The IPO subscription of another pharma company -Silva Pharmaceuticals Limited-will start on July 29 and end on August 05.

The IPO subscription of Indo-Bangla Pharmaceuticals was supposed to begin on April 08, but was suspended following a writ petition filed with the HC by National Bank Limited (NBL).

The NBL filed the writ petition as four directors of Indo-Bangla Pharmaceuticals were 'loan defaulters' as the guarantors of loans disbursed by the bank.

The HC withdrew its stay order last week as the Indo-Bangla Pharmaceuticals and NBL reached a solution regarding the loan issue.

The Bangladesh Securities and Exchange Commission (BSEC) approved the company's IPO proposal on October 3, 2017.

As per the BSEC approval, Indo-Bangla Pharmaceuticals will raise a fund worth Tk 200 million by issuing 20 million ordinary shares at an offer price of Tk 10 each under the fixed price method.

A market lot consists of 500 shares of Indo-Bangla Pharmaceuticals.

The company will utilise 29.29 per cent of the IPO proceeds for construction and other civil works, 62.36 per cent for purchasing machineries and 8.35 per cent for bearing IPO expenses, according to the IPO prospectus.

As per the financial statement for the year ended on June 30, 2016, the company's net asset value (NAV) per share and earnings per share (EPS) are Tk 11.63 and Tk 2.62 respectively.

The company's pre-IPO paid-up capital is Tk 730 million and authorised capital is Tk 1.0 billion.

AFC Capital, EBL Investments and CAPM Advisory are working together as issue manager of the IPO.

Indo-Bangla Pharmaceuticals, the flagship company of IBP group was established in 1954, incorporated as a private limited company under the Companies Act on June 18, 2014 and was converted into a public limited company on October 21, 2014.

The company is engaged in manufacturing and selling of all kinds of medicine (excluding antibiotic), medical preparations drugs & chemicals (Human Health).

Meanwhile, the securities regulator approved the IPO proposal of Silva Pharmaceuticals on June 11 last under the fixed price method.

The company will raise a capital worth Tk 300 million by offloading 30 million ordinary shares at an offer price of Tk 10 each.

The pharmaceutical company will purchase machineries, construct building, repay bank loans and bear the IPO expenses with the fund.

The Silva Pharmaceuticals reported the net asset value (NAV) of Tk 16.48 per share, (without revaluation)), weighted average EPS worth Tk 1.03 as per the financial statement for the year ended on June 30, 2017.

Prime Finance Capital Management, Imperial Capital and SBL Capital Management are working as managers to the issue.

The company's products, among others, are Timem, Duet, Omesil, Macrozith, Cipronil, Spuramix and Probac.