Square Pharma chairman announces to buy 20 lakh shares

Square Pharmaceuticals Chairman Samuel S Chowdhury plans to acquire 20 lakh shares valued at Tk43 crore, aiming to increase his stake in the company.

In a disclosure on the Dhaka Stock Exchange’s website on Thursday, he outlined his plans for acquiring the shares through public and block market transactions within the next 30 working days.

Meanwhile, the pharmaceutical company’s shares experienced a 0.70% increase on the news, reaching Tk217.30 on the country’s premier bourse on Thursday.

On 11 March, its Managing Director Tapan Chowdhury also declared to buy 20 lakh shares within 30 working days.

Earlier, in January this year, Tapan Chowdhury and another Director Ratna Patra, made a declaration for buying a total of 20 lakh shares.

When directors purchase shares to increase their ownership, general shareholders’ stake at that company declines, market insiders said.

This generates demand for the company’s shares in the market, potentially leading to an increase in its share price, they added.

As of 29 February, sponsors and directors jointly held 35.01% shares in Square Pharma, while institutions held 15.21%, foreign investors 13.97%, and general investors 35.81%.

In the July-December period, its revenue stood at Tk3,746 crore, slightly down from Tk3,751 crore one year ago. Its net profit after tax stood at Tk920 crore and its earnings per share was Tk10.37.

According to company statement, several products of Square Pharma have been transferred to its wholly owned subsidiary (99.95%), Square Lifesciences Ltd.

As a result, the standalone earnings per share of the company reduced during this period.

However, the consolidated earnings per share of the Square group were not affected by this transfer and achieved positive growth during the period.

It had paid a 105% cash dividend to its shareholders for the fiscal year 2022-23, which was 100% a year ago.


Source: The Business Standard

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