Techno Drugs get BSEC’s nod to issue Tk100Cr IPO

Bangladesh Securities and Exchange Commission (BSEC) has granted approval to Techno Drugs Ltd for a Tk100 crore initial public offering (IPO) under the book-building system. 

The approval came in a meeting of the securities regulator yesterday, said the press release.

The drug maker will use this fund to purchase machinery, balancing, modernisation, rehabilitation, and expansion (BMRE) of its Narsingdi factory, construction projects at its Gazipur facility, and repayment of loans. The allocation of funds is outlined as follows: Tk25 crore for upgrading and renovating the Narsingdi factory, Tk15 crore for construction in Gazipur, Tk27 crore for machinery, Tk30 crore for loan repayment, and Tk3 crore for IPO expenses.

General investors will have the opportunity to purchase the company's shares at a 30% discount from the cut-off price. However, the company will not be able to declare any dividend, approval, or distribution before enlisting on the stock exchanges.

EBL Investments Ltd and Imperial Capital are acting as issue managers for the company.

According to the financial report for the 2022-23 fiscal year, Techno Drugs Ltd recorded a revenue of Tk273.35 crore, reflecting a decrease from Tk502.85 crore in the previous year. The net profit after tax stood at Tk19.55 crore, compared to Tk47.98 crore a year earlier. The earnings per share for 2022-23 was Tk2.08, down from Tk5.10 in the previous fiscal year.

The drug company's net asset value per share with revaluation was Tk27.74, and Tk22.57 without revaluation at the end of June 2023.

Techno Drugs Ltd started its journey in 1996 with the manufacturing of essential veterinary medicine which was not available locally at that time. Over the years, the company diversified its portfolio, becoming a major player in anti-cancer and hormonal medicines. 

To address market gap and dependency on imported oncology medicines, the company started production of anti-cancer medicines for the first time in the country in 2010. In 2015, to meet the increased demand, the company established its state-of-the-art factory in BK Bari, Gazipur.

The company is also the biggest injectable hormonal medicine supplier to the government, and the fifth contraceptive implant manufacturer in the world and the first of its kind in Bangladesh.