Navana Pharma to convert 60% of Tk150cr bond into shares
The bond will be issued for five years, and the conversion process will start in the third year
Navana Pharmaceuticals Limited is going to issue a Tk150 crore bond and wants to convert 60% or Tk90 crore of the bond into shares.
The company said in a statement that it will issue the bond for five years, and the conversion process will start in the third year.
As per its plan, the company will convert 20% of the bond into shares each year starting from the third year till the fifth.
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To convert into shares, the company will seek shareholders' approval by holding an extraordinary general meeting (EGM) on 31 July. After shareholders' approval, the company will seek the securities regulator's consent.
The bond amount will be used for repaying its existing bank loans, which totalled to Tk330 crore as of 31 March.
The company has repaid Tk21.18 crore in bank loans out of the Tk75 crore capital it collected from the investors through an initial public offering (IPO) last year.
Meanwhile, Navana Pharma is going to renovate its existing production line instead of setting up new facilities with funds raised from the capital market.
According to the IPO prospectus, Tk23.24 crore was allocated for setting up a new production plant.
But the company now plans to invest Tk25.57 crore for modernisation and expansion of the existing facilities. The rest of the investment will come from its own funds.
In the scheduled EGM, the company will seek shareholders' approval of its change of IPO utilisation plan too.
Navana Pharmaceuticals shares, having a face value of Tk10 apiece, fell by 2.84% to Tk112.7 at the Dhaka Stock Exchange on Thursday.
