Navana Pharma share cut-off price set at Tk34

The per share cut-off price of Navana Pharmaceuticals Ltd has been fixed at Tk34 on the electronic subscription system (ESS).

Qualified and institutional investors including mutual funds can buy 25% of the company's shares at the cut-off price.

Individual investors will be able to purchase the remaining shares at Tk23.80 each, i.e., at a 30% discount on the cut-off price.

The cut-off price is the price at which institutional investors have primary shares allocated for them in an initial public offering (IPO) under the book-building method.

The company's electronic bidding took place between 4 July and 7 July.

During this period, 281 institutional and eligible investors offered to buy the company's shares at a range of rates. Most bids were received for Tk34.

Earlier, the drug maker secured regulatory approval to raise Tk75 crore from the capital market with an IPO under the book-building method to expand its business.

Navana Pharma was incorporated in Bangladesh on 31 March, 1986. The company operates in two categories of pharmaceuticals: veterinary and human health.

The veterinary division of the company manufactures and markets more than 123 high-quality medicines and feed supplements that include poultry, dairy, and aqua products.

The human health division produces more than 277 drugs as tablets, capsules, oral liquids, ampoules, dry powder vials, powders for suspension, eye drops, creams & ointments, and more.

According to its audited 2020-21 financial report, the company's net profit was Tk17.98 crore, which was Tk13.13 crore in the previous fiscal.

During the period, its revenue was Tk360.66 crore, which was Tk314.90 crore in the previous year.

For FY21, its earnings per share stood at Tk2.24 and the net asset value per share was Tk40.9.

Asian Tiger Capital Partners Investment Ltd and EBL Investments Ltd are the issue managers for Navana Pharma's IPO.