Techno Drugs Limited, a pharmaceutical company in the process of raising capital from the stock market through the book-building method, has allocated shares to applicants in its Initial Public Offering (IPO). Due to an oversubscription, shares were distributed proportionately among the applicants.
Domestic investors who applied for shares worth BDT 10,000 received 11 shares each, while those who applied for Tk 10 lakh received 1,166 shares each. Non-resident Bangladeshi applicants were allotted 20 shares for every Tk 10,000 applied, and those who applied for Tk 10 lakh received 2,016 shares each. The share allocation took place on Tuesday, July 2nd.
Currently, there is no lottery system for IPOs in the stock market. Shares are allocated proportionately based on the number of applications received, as was the case with Techno Drugs’ IPO.
The company aims to raise Tk 100 Crore through the IPO. It received applications worth Tk 2 thousand 487 crore, significantly exceeding the target. Of this amount, Tk 2 thousand 412 crore came from general investors, and Tk 61 crore 17 lakh 57 thousand 194 came from eligible investors.
Applications for Techno Drugs’ IPO were submitted between June 9 and June 13. The cut-off price was set at Tk 34, and investors could purchase shares at 30% less than the cut-off price, amounting to Tk 24 per share.
The funds raised from the IPO will be used for purchasing new machinery, BMRE (Narsingdi factory), building construction (Gazipur factory), partial debt repayment, and issue management costs. According to the audited financial statements for the fiscal year ending June 30, 2023, the company’s Net Asset Value per Share (NAVPS) was Tk 27.74, including revaluation, and Tk 22.57 without revaluation. The Earnings Per Share (EPS) for the fiscal year was Tk 2.08, with a weighted average of Tk 3.25 over the past five years.
Imperial Capital Limited and EBL Investments Limited are managing the issue for Techno Drugs Limited.
