Silva pharma seeks 6 more months for IPO implementation

Silva Pharmaceuticals Ltd, listed on both the bourses, has applied to the securities regulator seeking six more months to implement its initial public offering (IPO).

The company manufactures and markets pharmaceutical finished products in different categories.

In October 2018, the company raised Tk30 crore from the stock market to acquire machinery and equipment, implement civil construction and repay loans. But, it could not complete the project on time.

The company's IPO utilisation period expired on April 10, 2020. It has already applied to the Bangladesh Securities and Exchange Commission to extend its project tenure.

Until February 29, 2020, Silva Pharmaceuticals used Tk15.36 crore, which was 51.20 percent of the IPO fund.

Also, the company allocated Tk12.25 crore to acquire machinery and equipment of which 2.50 percent has been used, and Tk5.6 crore for civil constructions of which 55.51 percent has been used.

The company's secretary Md Iqbal Hossain told The Business Standard, "We have already applied to the securities regulator seeking another six months to complete the work, and our general shareholders approved it in the last annual general meeting."

 "Also, we issued LCs (Letters of Credit) for importing the required equipment, and the process is going on even during the lockdown."
The securities regulator approved Silva Pharmaceuticals' IPO on June 11, 2018.

According to the company's financial report of the first half of this year, its net profit was Tk7.55 crore, down from Tk8.60 crore during the same period of the previous fiscal year.

At the same time, its earnings per share (EPS) was Tk0.57 and net asset value per share was Tk15.78.

During the period, the company achieved a turnover of Tk40.56 crore, up from Tk37.06 crore in the previous period.  

The company recommended 6 percent cash and 5 percent stock dividends for its shareholders for the  2018-19 fiscal year. During this time, its net profit was Tk14.33 crore, which was Tk9.30 crore in the previous fiscal year.  

Sponsors and directors of Silva Pharmaceuticals jointly own 53.49 percent of its shares, institutional investors own 13.71 percent, foreign investors own 0.02 percent and general investors own 32.78 percent.

The company's paid-up capital is Tk136.50 crore and its reserve is Tk76.84 crore.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk18.60.

Incorporated on April 24, 2001, Silva Pharmaceuticals went into operation on July 1, 2003.

It has set up a modern pharmaceutical plant that is equipped with advanced and modern machinery and technology.

The company was listed on both the bourses in 2018.