Beximco Pharma's share price plummets 47% since July
From 4 July to 2 October, the share price of Beximco Pharmaceuticals dropped by 47%, close to Tk66 per share at the Dhaka Stock Exchange (DSE).
During the period, its market cap also declined by Tk2,628 crore to settle at Tk2,944 crore.
Market insiders said that Beximco Pharma's Vice Chairman, Salman F Rahman, who also served as an advisor to the ousted Prime Minister Sheikh Hasina, has been arrested in connection with murder charges stemming from protests during the student demonstrations against the government.
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This development has triggered a wave of panic among investors, leading many to offload their holdings in Beximco Pharma due to concerns over the company's uncertain future.
However, Beximco Pharma issued a statement, published on the London Stock Exchange, clarifying that Salman F Rahman is not involved in the company's day-to-day operations.
The company assured investors that his arrest would not impact the smooth functioning of Beximco Pharma's business activities.
Besides, following a writ petition, the High Court ordered Bangladesh Bank to appoint a receiver to the Beximco Group and its associates including Beximco Pharma over loan scams.
In this context, Beximco Pharma said to the London Stock Exchange on 30 September, that Beximco Group has been accused, following a preliminary review by the financial crime unit of the Bangladesh CID, of taking loans from seven banks through fraudulent means over several years.
However, Beximco Pharmaceuticals is not a party to any of the loans of Beximco Group.
Beximco Pharma clarified that the interim order appointing a receiver for the Beximco Group of Companies does not impact Beximco Pharma, as it operates independently as a publicly listed entity with a diverse base of institutional, retail, and international shareholders.
The company emphasized that it should not be regarded as part of the 'Beximco Group of Companies.'
Furthermore, Beximco Pharma stated that its total issued shares amount to 446,112,089 ordinary shares. Of this, only 10.02% are held by associated companies and 4.07% by sponsors and directors.
Salman F Rahman, with a direct holding of just 2.04%, does not hold a majority stake in the company.
The company stated that it would take all necessary legal steps to assert its factual and legal position regarding the High Court order, particularly to determine whether Beximco Pharma was wrongfully included in the lawsuit.
