B Mirror Desk : The Bangladesh Securities and Exchange Commission (BSEC) has established a three-member committee to conduct an investigation into Indo-Bangla Pharmaceuticals Limited, focusing on its initial public offering (IPO) proceeds, financial statements, and overall business practices.

Recently, the commission sent official notifications to the relevant stakeholders regarding the committee’s formation. The committee is chaired by BSEC Additional Director Md Iqbal Hossain, with BSEC Assistant Director Mohammad Ruman Hossain and Dhaka Stock Exchange (DSE) Senior Manager Snehasish Chakraborty serving as members.

The committee has been allotted a period of 60 days to complete its investigation and present a report to the commission. BSEC Director and Spokesperson Abul Kalam indicated to media that the commission will pursue legal action if any irregularities are identified in the investigation report.

On Thursday, Indo-Bangla Pharmaceuticals’ share price closed at Tk10.20 on the Dhaka Stock Exchange. In December 2023, the share was valued at Tk20, but it has since experienced a steady decline, falling to Tk7 by October of the same year.

BSEC officials noted that the company’s performance has deteriorated since its listing on the stock market, resulting in a failure to deliver returns to investors and leaving them without the expected profits.

The investigation will scrutinize how the company utilized the funds raised through its IPO, which were earmarked for business expansion. The committee will also assess the company’s paid-up capital, including that generated from bonus share issuance, as well as its fixed assets and financial statements.

Additionally, the investigation will evaluate the company’s overall business condition and ongoing operations, verify unclaimed dividends, and explore other financial issues.