Indo-Bangla Pharmaceuticals

IPO subscription begins July 22 as HC rescinds stay order

FE Report | Published: July 18, 2018 10:39:16 | Updated: July 19, 2018 10:26:25


The IPO subscription of Indo-Bangla Pharmaceuticals Limited will start on July 22 and end on July 26 as a stay order in this regard has been rescinded.

There is no bar to conduct the IPO (initial public offering) subscription as the High Court (HC) has withdrawn its stay order, the issue manager said.

Earlier, the HC issued the stay order on the company's IPO subscription following a writ petition filed by National Bank Limited (NBL).

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

Before the writ petition, the bank had also filed a case with Barishal Artha Rin Adalat against Indo-Bangla Pharmaceuticals Works, previous name of Indo-Bangla Pharmaceuticals, over the non-payment of a loan worth more than Tk 141.50 million.

"The HC has withdrawn its stay order as the Indo-Bangla Pharmaceuticals and NBL have reached a consensus about the financial matter," said Mahbub H Mazumdar, managing director of AFC Capital, the issue manager of the IPO.

Mr. Mazumdar said the securities regulator has set the IPO subscription schedule following the court's decision.

The BSEC approved the company’s IPO proposal on October 3, 2017 to raise a fund worth Tk 200 million by issuing 20 million ordinary shares at an offer price Tk 10 each under the fixed price method.

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