Bidding to set the cut-off price - the offer price at which shares get issued to investors – for the shares of Navana Pharmaceuticals which will raise capital from stock markets under the book building method ends on Thursday.
The share price will be determined based on offers made by eligible investors – institutions and high net worth individuals – in the electronic subscription system.
General investors will receive the primary shares at a 30% discount on the cut-off price.
The bidding for the company started from 5 pm on 4 July, which will continue till 5 pm Thursday.
The principal activities of the company are manufacturing, marketing and distribution of pharmaceutical products for human and animal health and sales of the produced items in the domestic and foreign markets.
The company is currently marketing 48 human and 48 veterinary products.
Navana Pharmaceuticals will expand its business
Starting its business journey in 1986, Navana Pharmaceuticals will now expand its business.
The company will raise capital of Tk75 crore by issuing shares to stock investors as an alternative source of finance instead of bank loans.
According to its IPO prospectus, the company will use the fund to renovate its cephalosporin unit and build manufacturing, utilities and engineering buildings.
The company has a factory at Rupshi in Narayanganj. The general production unit and the veterinary production unit went into operation in 1986 and 2003 respectively.
The financial accounts for the last five years indicate that the company's business in the local market and exports have been steadily increasing.
Its products are exported to Myanmar, Vietnam, Sri Lanka, Kenya, and Hong Kong.
Navana Pharmaceuticals had total revenue of over Tk243 crore in fiscal 2017-2018, of which over Tk223 crore was local sales and Tk10.82 crore was exports.
Five years later, in fiscal 2020-21, the company's revenue increased to Tk360 crore, of which domestic sales are Tk336 crore and exports are Tk24 crore.
In the first nine months of fiscal 2021-22, its earnings per share (EPS) were Tk2.39.