The company authority wants to raise fund for the construction of the new factory through issuing bond or rights shares
Indo-Bangla Pharmaceuticals Limited will set up a new factory in Gazipur to manufacture international-standard medicines. The company has already started acquiring land for this purpose.
According to high officials at the company, an investment of around Tk70 crore is needed for constructing the new factory in compliance with the internationally recognised Good Manufacturing Practice guidelines.
Already, the company has spent Tk15 crore from its own fund as advance payment for buying 31 bighas of land in Kaliakoir upazila of the district. Of this, five bighas have been procured by now.
Chief Financial Officer of Indo-Bangla Pharma Md Faruque Hossain told The Business Standard that they will buy land for the new factory in phases.
The company authority wants to raise fund for the construction of the new factory through issuing bond or rights shares.
Indo-Bangla Pharma raised Tk20 crore from the stock market by issuing Initial Public Offerings (IPO) in 2018. Of this fund, Tk13 crore was allocated for purchasing machineries for the existing factory in Barishal, while another Tk5 crore was kept allotted for constructing a new building there.
The company has already purchased the equipment, but the building has not been constructed as yet.
Faruque Hossain said the Tk5 crore from the IPO fund, which was allotted for the purpose of constructing a new building on Barishal factory premises, will be spent in constructing building for Gazipur factory. The shareholders of the company have already approved the proposal.
Meanwhile, Hong Kong-based drug manufacturing company RHK Global has recently signed a deal with Indo-Bangla Pharma for manufacturing one of its tablets named 'Super Thermex-100mg'.
Under the agreement, every year, Indo-Bangla Pharma will produce 1.2 crore pieces of the tablet in its factory in Barishal. This will add Tk60 crore to the annual income of the company.
Indo-Bangla Pharma has also decided to manufacture antibiotics, including cephalosporin and penicillin. However, as there is no arrangement for producing these antibiotics in its own factory, the company has inked a deal with Nipro JMI Pharma for this purpose.
Indo-Bangla Pharma sold medicines worth Tk56 crore in the first nine months of the 2018-2019 accounting year. In this period, the net profit of the company stood at Tk11 crore, and the earning per share was Tk1.14. In 2017-2018 accounting year, the company distributed a 10-percent stock dividend to its shareholders.
The company started trading at the Dhaka Stock Exchange on October 18, 2018. Since then, the highest price for a share of the company reached Tk47.50, while the lowest was Tk15.70. The closing price of Indo-Bangla share was TK16.50 on Thursday.