IPO subscription of Indo-Bangla Pharma opens today

FE Report | Published: August 09, 2018 10:24:10 | Updated: August 09, 2018 20:06:41


Picture used for illustrative purpose only — Collected

 The public subscription of Indo-Bangla Pharmaceuticals Ltd begins today (Thursday) for raising a fund worth Tk 200 million.

The public subscription by the eligible investors will be continued through electronic subscription system till 5:30 pm on August 16 under fixed price method.

The initial public offering (IPO) subscription was supposed to begin on April 08, but was suspended following a writ petition filed with the High Court by National Bank Limited (NBL).

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

The HC withdrew its stay order later 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 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.

The market lot is 500 shares and an investor needs Tk 5,000 to apply for one lot.

The required amount (per lot) of foreign currency for NRBs and foreign applicants for the IPO is US$ 60.43 or GBP 43.60 or EUR 49.26, according to the Dhaka Stock Exchange (DSE).

The company will utilise 29.29 per cent of the IPO proceeds for construction and other civil works, 62.36 per cent for purchasing machinery 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 the 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).

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