Techno Drugs’ share price soars 140.53% in 10 days amid market downturn
Highlights
• Techno Drugs raised Tk100 crore through IPO
• Investors received IPO 11 shares
• Revenue of Tk273.35 crore FY23
• Its net profit of Tk19.55 FY23
Techno Drugs, a newly listed pharmaceutical company, saw its share price soar by 140.53% over just 10 working days.
In the last week alone, the share price surged by 81.43%, although the capital market faced a downward trend due to investor concerns over ongoing nationwide student protests and economic uncertainty.
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After reaching Tk63.50 on Thursday its share price closed at Tk61.60 on the Dhaka stock exchange on Sunday.
On 14 July, the company's shares debuted on the main boards of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) under the pharmaceuticals and chemicals sector.
The pharmaceutical company raised Tk100 crore from the stock market through an initial public offering (IPO) under the book-building method for business expansion.
In the IPO, investors received 11 shares for every Tk10,000 applied, 117 shares for every Tk1 lakh applied, and 1,170 shares for up to Tk10 lakh applied.
However, non-resident Bangladeshis received slightly more shares in the company's IPO, with 20 shares allocated for every Tk10,000 applied and 2,160 shares for up to Tk10 lakh applied, according to a DSE source.
Techno Drugs received applications amounting to approximately 25 times the shares allocated to general investors. The cut-off price of shares was fixed at Tk34 in the electronic bidding by eligible investors.
However, individual or general investors received the company's shares at a 30% discount, bringing the price to Tk24 per share.
In March, the Bangladesh Securities and Exchange Commission approved Techno Drugs to raise Tk100 crore.
The drugmaker said it would use this fund for purchasing machinery, balancing, modernisation, rehabilitation, expansion (BMRE) of its Narsingdi factory, construction projects at its Gazipur facility, and repayment of loans.
According to the company's financial report for fiscal year 2022-23, the drug manufacturer made a revenue of Tk273.35 crore which was Tk502.85 crore in the same period of the previous year. Its net profit after tax stood at Tk19.55 crore, which was Tk47.98 crore a year earlier.
In FY23, its earnings per share was Tk2.08 which was Tk5.10 in the previous year.
Its net asset value per share with revaluation was Tk27.74, and Tk22.57 without revaluation at the end of June 2023.
Techno Drugs started its journey in 1996 by manufacturing essential veterinary medicine unavailable locally at that time.
Over the years, the company diversified its portfolio, becoming a major player in anti-cancer and hormonal medicines.
In 2010, the company began producing anti-cancer medicines for the first time in the country to address the market gap and dependency on imported oncology medicines.
In 2015, it established a state-of-the-art factory in Gazipur to meet increased demand.
Techno Drugs is also the biggest injectable hormonal medicine supplier to the government, the fifth contraceptive implant manufacturer in the world and the first of its kind in Bangladesh, according to the company.
