Orion Pharma asked to pay back extra money to investors

The securities regulator Monday instructed the Orion Pharma to pay back extra money to the respective investors who purchased placement shares at higher prices than the offered price, officials said.

The regulator issued the instruction after holding an emergency meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

The regulatory order came following an order of the Supreme Court.

A senior BSEC official said on the condition of anonymity that the company will have to inform the regulator within seven days by complying with the instruction.

The Orion Pharma went public with an offer price of Tk 60, including the premium of Tk 50 for each ten taka share, in 2013.

Before going public, the company issued placement shares at the prices which were higher than the IPO price.

Later, three investors who purchased placement shares of Orion Pharma at higher prices filed writ petition as the company refused to pay back extra money.

According to BSEC officials, after getting the HC order, the regulator earlier instructed the company to pay back extra money of the respective investors.

Subsequently, a stay order was issued against the HC's order. Finally, the Supreme Court recently delivered its order for paying the extra money to the respective investors.

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