Square Pharma MD to purchase 2m shares from market

FE REPORT

The managing director of Square Pharmaceuticals, Tapan Chowdhury, is set to buy 2 million shares of the company at the current market price, according to a market filing on Monday.

Shares would be purchased from both the main board and block market of the Dhaka Stock Exchange (DSE) within the next 30 working days.

The stock of Square Pharma closed at Tk 200.4 each share on Monday on the Dhaka bourse. The total value of 2 million shares will be Tk 401 million at the current price.

The company's MD has decided to buy shares at a time when many well-performing stocks, including multinational ones, have been enduring price erosion and not finding expected buyers.

"When sponsors or directors of a company show interest in buying shares of their company, it indicates that they have confidence in the prospect of the company," said Md Sajedul Islam, a shareholder director of the DSE.

Sponsors have better insights into their own companies, and a buy declaration from them can be taken as a signal of better future performance and/or current undervaluation.

"We can take this as a positive signal, as the drug maker has been doing better despite economic challenges," said Islam, also the managing director of Shyamol Equity Management.

Sponsor-directors of Square Pharma have purchased shares of their own firm several times.

"It is a sign that they consider the stock undervalued and so have raised their stakes in the company," added Islam.

Square Pharma is considered one of the best-performing blue-chip stocks with an excellent reputation and has kept growing every year in terms of sales and profit, driven by strong faith in its products.

Square Pharmaceuticals, the largest drug maker in the country, posted a record profit of Tk 23.97 billion for FY25, driven by higher sales. The company's board declared the highest ever cash dividend -- 120 per cent -- for FY25.

The drug manufacturer also registered 25 per cent year-on-year growth in profit to Tk 8.53 billion in the first quarter (July-September) of FY26.

babulfexpress@gmail.com