BSEC forms body to probe Indo-Bangla's IPO proceeds, business status
The Bangladesh Securities and Exchange Commission (BSEC) has formed a three-member committee to investigate Indo-Bangla Pharmaceuticals Limited regarding its IPO proceeds, financial statements, and overall business operations.
The commission recently issued official letters to the relevant parties regarding the formation of the committee.
BSEC Additional Director Md Iqbal Hossain leads the committee. The other members are BSEC Assistant Director Mohammad Ruman Hossain and Dhaka Stock Exchange (DSE) Senior Manager Snehasish Chakraborty.
The committee has been given 60 days to complete the investigation and submit a report to the commission.
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BSEC Director and Spokesperson Abul Kalam told TBS that after receiving the investigation report, the commission will take legal action if any irregularities are found.
The share price of Indo-Bangla Pharmaceuticals closed at Tk10.20 on the Dhaka bourse on Thursday. Back in December 2023, the share was priced at Tk20, but it gradually declined and dropped to Tk7 in October of the same year.
According to BSEC officials, the company's performance has gradually declined since its stock market listing. As a result, it has failed to provide returns to its investors, leaving them deprived of their expected earnings.
The probe will examine how the company used the funds raised from the capital market through its IPO, which were intended for business expansion.
The committee will also review the company's paid-up capital, including capital raised through the issuance of bonus shares. Additionally, it will assess the company's fixed assets and financial statements.
The investigation will further evaluate the company's overall business status and ongoing operations. The committee will also verify unclaimed dividends and look into other financial matters.
An official of Indo-Bangla Pharmaceuticals, speaking on condition of anonymity, confirmed that the company has received a letter regarding the formation of the inquiry committee.
He said the company has been struggling to import raw materials for the past few years due to a persistent dollar crisis, which has become more severe over the last year. In the past year, the company was able to open letters of credit (LCs) only twice. As a result, it has been operating partially by sourcing raw materials from local suppliers.
The official added that the company is a client of First Security Islami Bank, which is also facing a dollar shortage. This has further affected the company's ability to import essential raw materials.
He noted that the company's revenue has declined due to its limited operations and the shortage of imported raw materials, which are essential for producing most of its products.
Although the bank has repeatedly assured that the dollar crisis will be resolved soon, the company is now considering switching banks to open LCs more easily and ensure a steady supply of raw materials, he added.
From July to December 2024, Indo-Bangla Pharmaceuticals reported a loss of Tk93 lakh, compared to a loss of Tk58 lakh during the same period the previous year.
During this period, the company's loss per share stood at Tk0.08, up from Tk0.05 a year earlier. As of the end of December 2024, its net asset value per share was Tk13.53.
