2024-05-01 23:23:04
Drug manufacturing company Techno Drugs Limited is coming to the capital market through the book building process of the Initial Public Offer (IPO) process. Following this, the bidding (auction) of the company was held on April 21 from 4 pm to April 24. The cut-off price (marginal price) of Techno Drugs has been fixed at Tk 34 in the bidding. However, in the IPO application, the investors will get 30 percent less i.e. 24 rupees common shares.
This information is known from the source of Electronic Subscriptions System (ESS).
According to the data, 143 institutional investors bid a maximum of Rs 34 in this bidding. And one person offers a minimum bid of 15 rupees.
Earlier, on March 7, Techno Drugs Limited received approval to withdraw Tk 100 crore from the stock market through IPO. Through the IPO, Techno Drugs will issue common shares at a 30 percent discount to the cut-off price. Through this the company will withdraw 100 crore rupees.
21 crore 25 lakh has been allotted out of 100 crores for eligible investors in the bidding of the company. Eligible investors can bid a maximum of Tk 42,50,000 and a minimum of Tk 20,000,000 in the auction to get shares of this amount.
According to the audited financial statements of Techno Drugs for the financial year ended June 30, 2023, the company’s net asset value per share (NAVPS) with revaluation is Rs 27.74, without revaluation it is Rs 22.57. At that time, the company’s earnings per share (EPS) was 2.08 rupees. And the weighted average EPS of the last 5 years is Rs 3.25.
The proceeds from the IPO will be used by the company for purchase of new machinery, BMRE (Narsingdi factory), building construction (Gazipur factory), partial debt repayment and issue management expenses.
Imperial Capital Limited and EBL Investments Limited are managing the issue of the company.
The company cannot declare, authorize or distribute any dividend before listing in the capital market.
Earlier, on October 14, 2023, Techno Drugs organized a road show as part of the capital market listing process at a hotel in the capital. Qualified investors and stakeholders are invited. The company’s financial picture and future plans were presented in front of them.
Techno Drugs Limited is one of the top five companies in the country in pharmaceutical exports. The company has already gained a reputation by exporting medicines. The main objective of the company is to maintain this reputation. The main challenge of the company is to import quality raw materials and produce quality medicines in the country. The company manufactures and sells life-saving medicines and continues to be a profitable company. The company has several specialized products. Moreover, the company manufactures almost all kinds of medicines for human and veterinary medicine. Which will make the future progress of the company easier. Currently the total capital of the company is around 94 crores. Out of this, the board of directors holds 88 percent shares with the managing director holding 63 percent. The company will achieve more success in the future with the efficient board of directors and officers at present. Therefore, investors can safely invest in this company. The company has the ability to pay good dividends as per the expectations of the investors after listing in the capital markets.