IBN Sina Pharmaceutical Industry posted a 44% growth in profit year-on-year in January-March quarter of 2023-24 fiscal year.

However, the company’s profit grew at a slower rate of 20% during the first nine months.

With the growth in profit, the drug maker’s share prices jumped by 1.34% to Tk257 each at the Dhaka Stock Exchange (DSE) yesterday over the previous session.

According to IBN Sina’s financial disclosure published on DSE website on Sunday, its consolidated earnings per share (EPS) rose to Tk4.31 in the January-March quarter, up from Tk2.99 during the same period of the previous fiscal year.

It’s consolidated EPS for the first nine months of FY24 surged to Tk16.23, up from Tk13.52 in corresponding period of FY23.

Over the period, the company’s net operating cash flow per share declined to Tk15.50 from Tk17.47 in the July-March period of FY23.

The net asset value (NAV) per share stood at Tk106.75 in March, 2024, up from Tk96.68 a year earlier.

Founded in 1983, IBN Sina Pharmaceuticals got listed on the Dhaka Stock Exchange in 1989.

The company manufactures drugs such as herbal and Unani medicines. Its manufacturing facilities are located in Gazipur.

It has two manufacturing plants – one is pharmaceuticals and another is a natural medicines plant with state-of-the-art technology.

In FY23, it posted a profit of Tk60.54 crore and paid a 60% cash dividends to its shareholders.

Eastern Bank Limited has declared a 25% dividend for its shareholders for the year 2023 which ended on 31 December.

The dividend distribution will be 12.5% cash and 12.5% stock. The bank paid the same dividend to its shareholders in 2022.

According to its disclosure published on the Dhaka Stock Exchange (DSE), the consolidated earnings per share (EPS) stood at Tk5.07, which was Tk4.24 (restated) in 2022.

In 2023, the consolidated net asset value (NAV) per share stood at Tk33.57, up from Tk29.62 (restated).

During the year, its profit after tax stood at Tk612.07 crore, which was Tk512.06 crore in 2022.

Its consolidated net cash flow per share stood at Tk7.91 end of December 2023, which was Tk10.30 end of December 2022.

The private sector lender has fixed its annual general meeting on 29 April 2024. Its record date is also fixed on 2 April this year.

The bank said a stock dividend had been recommended to strengthen the capital base of the Company to support projected business growth and improve certain regulatory ratios.

It also recommended out of accumulated profit, not from capital reserve, revaluation reserve, or any unrealized gain.

On Monday, the share price of the bank increased by 0.32% to Tk31.60 on the Dhaka stock exchange.

The bank commenced operations on 16 August 1992 and at present it has 83 branches, 23 sub-branches, and 63 agent banking outlets across Bangladesh.

Eastern Bank was listed on the Dhaka Stock Exchanges in 1993. As of 29 February 2024, sponsors and directors jointly held 30.67% of shares, institutions 47.05%, foreign 0.08%, and general investors 22.20% of the company.

Driven by the buying mode of investors, 69% of Dhaka stocks jumped, while the benchmark index and daily turnover maintained an uptick on Thursday.

A total of 394 stocks traded on the Dhaka Stock Exchange (DSE), of which 271 soared, 71 declined, and 52 remained unchanged.

However, the benchmark index, DSEX, increased by 90.65 points, or 0.98%, to 6,213, and turnover rose by 14% to Tk1,122.09 crore – exceeding Tk1,000 crore after a five-day break.

The country’s premier bourse opened higher as investors were active in buying shares and sustained the spirit till the closing bell.

EBL Securities, in its daily market commentary, said the capital bourse witnessed upbeat momentum in the final session of the week as buoyant investors continued their dominance in buying major scrips with positive expectations following favourable corporate earnings declarations for the recently ended quarter.

“Although indices remained flat in the first hour of the session, buyers took control of the trading floor in the subsequent period, prompted by the allure of potential quick gains owing to rebounding optimism across the trading board.”

The report reads that many investors decided to pour fresh funds into equities, adding further strength to the current rallies in sector-specific issues.

On the sectoral front, the engineering sector contributed the most by 19.1% in total turnover, followed by the pharmaceuticals sector by 13.7%, and textile sector stocks by 13.0%.

Most sectors displayed positive returns, out of which travel by 4.3%, ceramics by 4.0%, and services sector by 3.9% exhibited the most positive returns on the bourse.

Acme pesticides topped the gainer list with a gain of 10% to Tk25.3 each, followed by Navana CNG by 10% to Tk29.7 each, and Olympic Accessories by 9.94% to Tk18.8 each.

Institutional investors who bid for Asiatic Laboratories’ initial public offering (IPO) shares through book-building method have demanded their deposits back as the subscription process has been held up by the securities regulator since January this year.

The securities regulator suspended the subscription process after receiving a complaint that the company overstated in fixed assets.

Around Tk43.18 crore of 92 institutional investors who participated in the bidding is stuck in a Dhaka Stock Exchange (DSE) account for around a year, said sources.

An institutional investor is a company or organisation that invests money on behalf of other people. They include asset management companies, brokerage houses, merchant banks, etc.

The DSE Brokers Association of Bangladesh – a platform of trading right entitlement certificate (TREC) holders of the premier bourse – sent letters in this regard to the Dhaka Stock Exchange and the Bangladesh Securities and Exchange Commission (BSEC) last month.

The auction to determine the cut-off price of Asiatic Laboratories’ shares was held in October 2022. Institutional investors deposited money to the DSE’s account to participate in the bidding process at that time. The DSE then transferred the money to Asiatic’s account. The securities regulator suspended the company’s IPO subscription process in January this year.

Richard de Rosario, president of the DSE Brokers Association, told TBS, “Institutional investors have been suffering losses after their deposits got stuck in Asiatic’s account following the suspension of the company’s IPO. If the investors had that money they would invest it in the capital market, benefitting both themselves and the capital market, but now they cannot do that.”

“The BSEC has held up the IPO subscription, but a final decision should be taken on the matter. Due to the downturn in the capital market, institutional investors are desperate to get their money back,” he added.

In the book-building method, institutional investors participate in the bidding process for IPO shares by depositing money to the DSE’s bank account.  The DSE keeps the money of the bidders who get share allotment and return the other bidders’ money.

The investors’ money then is transferred to the company’s bank account. The company can start spending it in the areas stipulated in its prospectus after its stock market listing.

Why the IPO subscription was held up

On 15 January, the BSEC held up the electronic subscription of Asiatic Laboratories’ IPO shares until further notice.

The decision was taken due to some complaints against Asiatic Laboratories, the gravest of which were regarding overstatement of the company’s fixed assets, and dispute over its ownership.

The securities regulator has formed an enquiry committee to look into the matters, but they have not made a decision regarding its IPO.

The Financial Reporting Council (FRC) has found that Asiatic Laboratories overstated the value of its properties. Market insiders said the pharmaceutical company did that in an attempt to obtain better prices for its shares.

The council submitted its findings to the commission.

In August last year, the securities regulator allowed Asiatic Laboratories – a manufacturer of pharmaceutical products – to raise Tk95 crore through IPO under the book-building method.

The company said in its IPO prospectus that it will use the fund to begin producing anti-cancer drugs.

Of the Tk95 crore, it will use Tk58.05 crore to buy and install machinery, Tk6.26 crore to build a factory, and Tk28 crore to repay bank loans.

Earlier, in a bidding through the electronic subscription system by the institutional investors, the cut-off price of the company’s shares was determined at Tk50 each.

The general investors will get the shares at Tk20 each as per the BSEC rules.