The regulatory body Bangladesh Securities and Exchange Commission (BSEC) has formed a three-member investigation committee to look into the use of money collected through the initial public offering (IPO) process and the financial reports of the last 6 years of Asiatic Laboratories Limited, a company listed in the pharmaceutical and chemical sector in the capital market. The investigation committee formed has been directed to submit the relevant report to the commission within the next 60 days.
According to BSEC sources, an order in this regard has been issued recently.
The members of the investigation committee are – Additional Director of BSEC. Al Masum Mirdha, BSEC Assistant Director Mosabbir Al Ashiq and Dhaka Stock Exchange (DSE) Manager Snehasish Chakraborty.
BSEC Executive Director and Spokesperson Mohammad Rezaul Karim said the inquiry committee formed will review the financial records of Asiatic Laboratories from 2017 to 2022 and investigate how the IPO money was used. Appropriate action will be taken if any irregularities are found.
According to information, the IPO subscription process was suspended in January 2022 due to allegations of false land ownership claims, incorrect financials and fraudulent share money deposits. Later investigations found evidence of fake land ownership documents, false financial statements and fraudulent share money deposits. In this arrest, BSEC fined each director and issue manager of Asiatic Laboratory 50 lakh Taka. Besides, managing director Monir Ahmed, chief financial officer and company secretary have been fined Tk. 25 lakh.
As of last Tuesday, shares of Asiatic Laboratories were last traded at Tk. 34.50 on the Dhaka Stock Exchange. The board of directors of the company has announced a cash dividend of 10 per cent for common shareholders excluding sponsors and directors for the last financial year ended June 30, 2024. The company’s earnings per share (EPS) in the last financial year stood at Tk. 2.82. In the corresponding period of the previous financial year, the company’s profit per share was Tk. 2.19. As on June 30, 2024, the company’s net asset value per share (NAVPS) stood at Tk. 39.31. The annual general meeting (AGM) of the company will be held on Thursday, December 19 at 11 am in hybrid mode. The record date for this has been fixed on November 20.
Asiatic Laboratories manufactures, sells and distributes pharmaceutical products (for human use) across Bangladesh, including tablets, capsules, oral liquids, powders for suspension, ophthalmic treatments, injections and other pharmaceutical items.
Incidentally, in the 837th commission meeting of BSEC, the IPO of Asiatic Laboratories’ book building system was approved. The company will collect capital of 95 crore Taka from the stock market through IPO. For this reason, the period of public subscription was fixed from 16 to 22 January last year. Bidding was held to determine the cut-off price (marginal price) of the company’s shares from October 10 to 13 of that year. The Eligible Investors (EI) limit price of the company’s shares in the bidding was set at Tk.50. The BSEC stipulated that shares should be issued to general investors at a price of 30 percent or Tk. 20, whichever is lower than the threshold price. The company started trading in the capital market from March 5 this year.
The company authority said that the company will spend the money collected through the IPO on business expansion, production building construction, bank loan repayment and issue management expenses. Shahjalal Equity Management Limited has handled the issue management of the company.
