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Navana Pharma holds IPO road show for raising Tk 750m

FE REPORT | December 23, 2021 00:00:00


Navana Pharmaceuticals Ltd held a road show for raising Tk 750 million from the capital market through initial public offering (IPO) under the book-building method to expand its business.

The road show was held at a city hotel on Tuesday evening, where eligible institutional investors got detailed information about various aspects of the company.

The company will utilize the IPO proceeds for construction of new general production building (Tk 232.40 million), construction of new utility and engineering building (Tk 97.30 million), refurbishment of cephalosporin unit (Tk 178.50 million), partial loan repayment (Tk 211.80 million) and IPO related expenses (Tk 30 million), according to its red-herring prospectus.

A road show is a requirement under the book building regulations before the price discovery of a company's shares. The book building is a process through which an issuer attempts to determine the price to offer for its security based on demand from institutional investors.

Anisuzzaman Chowdhury, chairman of Navana Pharmaceuticals, Prof Dr Md Jonaid Shafiq, managing director of the company, issue managers and a good number of eligible investors were present at the road show, among others.

Mr Anisuzzaman Chowdhury said Navana Pharmaceuticals has been manufacturing quality products since its incorporation 30 years back and now the company is standing in a strong position.

"Navana Pharmaceuticals has continuously expanded its business through new ideas, innovations and quality products," he said.

Mr Chowdhury also informed that the company's net profit after tax stood at Tk 200 million for the year ended on June 30, 2021.

Navana Pharmaceuticals operates its business under two divisions: veterinary and human health divisions.

The veterinary division of the company manufactures and markets more than 123 high-quality medicines and feed supplements for different segments including poultry, dairy, and aqua products.

On the other hand, the human health division produces more than 277 drugs- tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, eye drops, creams & ointments, etc.

The company sells these products in the domestic and international markets. It exports to 15 countries and has around 3,000 employees.

According to its audited financial report for the year ended on June 30, 2021, the net profit of the company stood at Tk 202.29 million, which was Tk 137.39 million in the previous year.

During the period, the revenue of the company was Tk 3.60 billion, which was Tk 3.15 billion in the previous year.

The company has reported earnings per share of Tk 2.52 for the year ended on June 30, 2021, which was Tk 1.71 for the year ended on June 30, 2020.

The company's net asset value (NAV) per share stood at Tk 41.19 as of June 30, 2021.

Asian Tiger Capital Partners Investment Ltd, UCB Investment Ltd and EBL Investments Ltd are working as issue managers, while AFC Capital Ltd is working as the registrar for Navana Pharma's IPO process.

The factory of the drugmaker is situated at Rupshi, Rupganj, Narayanganj.

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