Stocks
Techno Drugs Debuts on DSE with 10% Share Price Jump
Pharmaceutical manufacturer Techno Drugs Limited has commenced trading on the Dhaka Stock Exchange (DSE) today, Sunday, July 14, following its initial public offering (IPO) under the book building method. This information was confirmed by DSE sources.
Listed under the Pharmaceuticals and Chemicals sector, Techno Drugs’ trading code on the DSE is ‘TECHNODRUGS,’ and the company code is 18499.
The company’s shares began trading at Tk26.40 each.
Techno Drugs raised Tk1 billion through its IPO, with a total subscription of Tk24.87 billion . Of this, Tk24.12 billion came from general investors, and Tk611.75 million from eligible investors.
The IPO subscription period ran from June 9 to June 13. The company set the cut-off price at TK34 per share, with shares being offered to investors at a 30% discount, or Tk24 per share.
Shares were allocated to IPO applicants on July 2, 2024, with more applications received than available shares, resulting in a proportional allocation. Domestic investors who applied for shares worth Tk10,000 received 11 shares each, while those who applied for shares worth Tk1 million received 1,166 shares each.
In contrast, expatriate Bangladeshi investors received 20 shares for every Tk10,000 applied for, and 2,016 shares for every Tk1 million applied for.
The company plans to use the IPO proceeds to purchase new machinery, for BMRE (Balancing, Modernization, Rehabilitation, and Expansion) at its Narsingdi factory, construct a building at its Gazipur factory, partially repay loans, and cover 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 Tk27.74 , including revaluation, and Tk22.57, excluding revaluation.
For the fiscal year in question, Techno Drugs reported earnings per share (EPS) of Tk2.08 , with a weighted average EPS of Tk3.25 over the past five years.
Imperial Capital Limited and EBL Investments Limited are managing the IPO issue.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
