IBN Sina Pharma shares drop 5% despite record dividend declaration
On the day, its share price dropped by Tk17.3, closing at Tk329.40, down from Tk346.70 in the previous session
IBN Sina Pharmaceutical shares experienced a 4.99% decline today (3 October) at the Dhaka Stock Exchange (DSE), despite the announcement of a record dividend payout by the drugmaker.
Market insiders said investors seemed to react to broader market pressures, overshadowing the positive news of the dividend.
On the day, its share price dropped by Tk17.3, closing at Tk329.40, down from Tk346.70 in the previous session.
In a morning announcement prior to the start of trading, IBN Sina Pharma disclosed through the DSE website that its board of directors had recommended a 63% cash dividend for shareholders for the fiscal year 2023-24.
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According to a company official, this marks the highest payout in the company's history, surpassing the previous record of a 60% cash dividend in FY23.
To obtain shareholder approval for the dividend payout and the annual audited financial statements, IBN Sina Pharma will hold its annual general meeting (AGM) on 24 November. The company has set 27 October as the record date, determining shareholder eligibility for both the AGM and the dividend.
The company was listed in 1989, but for the first four consecutive years, it did not issue any dividends to its shareholders. Its lowest dividend payout came in 1993 when it declared a modest 4% cash dividend, according to the company's website.
In the last fiscal year, IBN Sina Pharma reported an 11% increase in consolidated earnings per share (EPS), reaching Tk21.46. The company's net profit surged to Tk67 crore, marking a record high, according to sources. At the end of FY24, its consolidated net asset value was Tk111.94, up from Tk96.68 a year ago.
Founded in 1983, IBN Sina Pharma is one of the major players in Bangladesh's pharmaceutical industry, known for producing a diverse range of pharmaceutical products. Its manufacturing facilities are located in Gazipur, with two plants – one for pharmaceuticals and another for natural medicines – both equipped with state-of-the-art technology.
In 2023, IBN Sina Pharma announced an investment of Tk10 crore in its active pharmaceutical ingredients (API) project, specifically for the acquisition of capital machinery at its facility in Munshiganj.
Of the total shares of the company, IBN Sina Trust owns 44.30%, ICB Unit Fund holds 8.19%, and general investors hold 32.54%.
