Navana Pharma to raise Tk 1.5b through bonds

Navana Pharmaceuticals has decided to raise Tk 1.5 billion by issuing unsecured, partially convertible and redeemable bonds through private placement.

The decision was taken at a meeting of the board of directors on Sunday, according to a statement issued by the company.

The proceeds of the bonds will be used to refinance the existing bank loans. The tenure of the bonds will be five years and the coupon rate will be floating and on a semiannual basis.

The bond issuance is subject to the approval of the shareholders and the Bangladesh Securities and Exchange Commission.

To secure shareholders' approval, the company will hold an extraordinary general meeting online on July 31.

The record date is July 5.

Navana Pharmaceuticals got listed in the stock market in October last year by raising Tk 750 million under the book-building method.

It posted an impressive 54 per cent year-on-year growth in profit to Tk 105 million for January-March this year, riding on higher sales revenue.

The company's revenue also rose 16 per cent year-on-year in the nine months through March to Tk 4.23 billion while profit jumped 30 per cent to Tk 249 million during the period.

Company secretary Jounul Abedin earlier said profit had increased as sales of their branded products increased.

Backed by the profit growth, the stock price soared 45 per cent in a month to close at Tk 117.10 on Sunday. The share price surged 7.33 per cent on Sunday alone.

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