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The board of directors of Navana Pharmaceuticals has approved and recommended to change the use of initial public offering (IPO) proceeds.
The drug maker raised Tk 750 million from the stock market under the book-building method in September last year to build a new general manufacturing unit, construction of new utility & engineering buildings, renovation of cephalosporin unit and partial loan repayment.
As per the IPO prospectus, the construction of the new general production building constitutes Tk 232 million or 31 per of the total IPO proceeds.
Now the company plans to replace it with modernisation and expansion of the small volume parenterals and ophthalmics (SVPO) facility along with similar modernisation and expansion of general liquid facility with dispensing area, modernisation and expansion of animal health facility, said the company in a regulatory filing on Monday.
Besides, the company will modernise product development & quality control for Tk 23.4 million with its own source.
The balance use of proceeds of the IPO remains the same, with 52 per cent of the use of proceeds already completed.
The revision of IPO fund utilisation is subject to obtaining approval from the shareholders of the company in its upcoming extraordinary general meeting scheduled to be held on July 31 and approval from the Bangladesh Securities and Exchange Commission (BSEC), said the company.
The drug maker’s stock price traded between Tk 111 and Tk 115.50 in the first two hours of trading on Monday.