Techno Drugs IPO bidding starts on 21 April

The electronic bidding of Techno Drugs Limited to determine the cut-off price of its shares is scheduled to begin on 21 April and will continue until 24 April.

General investors will get the company's shares allotment at a 30% discount from the cut-off price.

Only, eligible investors will take part in the bidding where the minimum bidding value will be Tk20 lakh.

According to a disclosure of the Dhaka Stock Exchange (DSE), pension, provident and gratuity funds that have a minimum investment of Tk1.50 crore, and other investors who have maintained a minimum investment of Tk3 crore at market price in matured listed securities as of 8 April are eligible to bid for the initial public offering (IPO) shares of Techno Drugs.

Techno Drugs on 8 March had received regulatory approval for determining the cut-off price for raising Tk100 crore for business expansion through an IPO under the book-building system.

The drug maker will use the fund to purchase machinery, balancing, modernisation, rehabilitation, and expansion of its Narsingdi factory, construction projects at its Gazipur facility, and repayment of loans.

It will allocate 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.

According to its financial report for fiscal year 2022-23, Techno Drugs recorded a revenue of Tk273.35 crore, reflecting a decrease from Tk502.85 crore in the previous year.

Its net profit stood at Tk19.55 crore, compared to Tk47.98 crore a year earlier.

Techno Drugs 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 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.