Orion Infusion has planned to increase its paid-up capital from Tk 203.60 million to Tk 305.40 million by issuing one share for two existing shares of the company to meet regulatory requirement.
An investor will be able to purchase one new share at Tk 20 against every two shares that they have already been holding. The company will collect Tk 203.60 million by selling 10.18 million shares at Tk20.
According to the company, it will utilize the money to pay out bank loan and for balancing, modernisation, rehabilitation and expansion of its operation.
Orion Infusion will need approval of its shareholders and the Bangladesh Securities and Exchange Commission (BSEC) before going ahead with the plan.
Meanwhile, Orion Infusion has disclosed its FY23 earnings, which revealed a 1.9 per cent year-on-year decline to Tk 41.9 million. It has also recommended 10 per cent cash dividend for the year.
The stock of the producer of injectables traded at Tk 332.90 on Sunday on the Dhaka Stock Exchange (DSE). Investors traded in Orion Infusion at only Tk84 in June last year. The stock began climbing up at the end of the month and within four months escalated by 1015 per cent to Tk 970.
At Tk 970 each share, the price-to-earnings ratio stood at 708.
In mid-November last year, Orion Infusion declared 10 per cent cash and 10 per cent stock dividend for FY22.
That was followed by a steep decline in the share price to Tk 485 within two weeks.
In December, the securities regulator rejected the plea for issuing stock dividend and asked the company to disburse 20 per cent cash dividend instead.
After that the share price fell further to Tk 260 before picking up again.
At the current price, the stock's P/E ratio is 161, indicating that it is overpriced even at this level, when compared to the overall P/E ratio of the bourse which is around 15.
The market value of Orion Infusion is Tk 7.03 billion at present.
The net asset value per share of the company went up from Tk 14.22 in FY22 to Tk 14.32 in FY23.
The net cash flow per share also rose to Tk 2.98 in FY23 from Tk 2.23 a year ago.
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