Techno Drugs shares soar on debut day
By the end of the day, its shares closed at Tk26.40, which was Tk2.40 higher than the opening price of Tk24, set through the book-building method. During the session, 1,767 shares were traded
Techno Drugs, listed through the IPO book-building method, saw its shares soar to the upper circuit limit of 10% on the debut day on the Dhaka Stock Exchange (DSE) today.
By the end of the day, its shares closed at Tk26.40, which was Tk2.40 higher than the opening price of Tk24, set through the book-building method. During the session, 1,767 shares were traded.
Following the first day's drive, the drug maker's market capitalisation increased by Tk31.68 crore to reach Tk348.47 crore.
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At the bell-ringing event on the company's debut trading day, Chittagong Stock Exchange Managing Director Shaifur Rahman Mazumdar remarked that there was a record number of applications for the Techno Drugs IPO, indicating high investor expectations.
"We hope that Techno Drugs and its directors will manage the company in a manner that contributes to long-term investor confidence in the days ahead," he added.
Shah Jalal Uddin Ahmed, managing director of Techno Drugs, said, "We have entered the capital market after extensive planning and preparation. Our goal is to benefit investors and establish Techno Drugs as a credible company in the capital market. We will diligently work to earn and enhance the trust and loyalty of our investors."
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.
EBL Securities in its equity note on the company's financial performance said revenue generation of Techno Drugs is highly reliant on government tenders.
The revenue of the company may be significantly impacted when there is a decrease in government tender calls. This was evident in the fiscal year 2022-23 when a lack of government tenders led to a 45.6% decline in revenue.
