B Mirror Report:  Listed pharmaceutical and chemical company Techno Drugs Ltd. is utilizing its initial public offering (IPO) funds in accordance with approved purposes, according to an audit report prepared by Arun & Company, Chartered Accountants.

The audit report, which reviewed the use of IPO proceeds up to the quarter ended March 31, 2026, said the company has been spending the funds on factory development and expansion projects, including construction works at its Gazipur facility and BMRE (Balancing, Modernization, Rehabilitation and Expansion) activities at its Satirpara plant in Narsingdi.

According to the report, several infrastructure works at the Gazipur factory have already been completed. These include internal and external drainage systems for the effluent treatment plant (ETP), fire hydrant and detection systems, sanitary and plumbing works, scrap yard construction, internal roads, shelf leveling, and epoxy flooring in different buildings.

Construction of the research and development (R&D) unit, office space, and canteen building has also been completed, although side wall plastering remains unfinished in some sections.

However, construction of the anti-tuberculosis (TB) building is still ongoing, with work continuing up to the 34th floor, the report added.

At the Satirpara facility, the BMRE project has completed several key works, including clean room wall and ceiling panels, utility and product development machinery installation, water systems, electrical services, sanitary and plumbing systems, and warehouse temperature monitoring systems.

Development work at the administrative building, general production unit, and oncology production facility has also been completed.

Meanwhile, installation work for the HVAC system, fire detection and firefighting systems, partition walls, epoxy flooring, building maintenance, and injectable machinery remains under progress.

The auditors noted that most of the machinery and equipment procurement outlined in the IPO prospectus has already been completed, except for two stability chambers that are yet to be delivered. Some supplied equipment has already been commissioned, while others are currently being installed.

The report also mentioned that a supplier failed to deliver products as per contract terms, leading to cancellation of the agreement. As a result, an advance payment of Tk 20 million was refunded and redeposited into the company’s IPO account.

The auditors confirmed that Techno Drugs is using IPO proceeds in compliance with the objectives stated in the prospectus and following the conditions set by the Bangladesh Securities and Exchange Commission (BSEC). They also verified that funds allocated for bank loan repayment were used within the stipulated timeframe.