BSEC to inspect Al-Madina Pharma
To run the inspection, in exercise of the power conferred on rule 17 of the Securities and Exchange Rules, the commission appointed three members – two from the commission and one from the Dhaka Stock Exchange (DSE).
The Bangladesh Securities and Exchange Commission (BSEC) has decided to conduct a comprehensive inspection of Al-Madina Pharmaceuticals, a publicly listed SME company.
The inspection will cover the company's factory premises, head office, books of accounts, records, and other relevant documents to safeguard the interests of the capital market and general investors, according to a commission's order.
To run the inspection, in exercise of the power conferred on rule 17 of the Securities and Exchange Rules, the commission appointed three members – two from the commission and one from the Dhaka Stock Exchange (DSE).
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The three members are BSEC's Md Sirajul Islam, deputy director (general), AKM Faruk Alam, assistant director (general), and DSE's Md Shohidul Islam Pramanik, manager.
The inspection committee has been asked to submit a report to the commission within 30 working days.
AL-Madina Pharmaceuticals, manufacturer, importer and exporter of the pharmaceuticals raw and finished products, raised Tk5 crore from the capital market under the qualified investors offer, and got listed on the SME board of bourses in 2023.
According to the BSEC order, the committee has been tasked with overseeing eight issues, including the utilisation of raised funds, identification of transactional parties, related-party transactions, all other transactions, verification of bank account transactions and unspent funds, and ensuring shareholders' approval in revising the purposes.
According to its annual report for FY24, its revenue was Tk64.41 crore, and net profit after tax Tk1.78 crore, both declined over the previous fiscal year from Tk68.56 crore and Tk2.51 crore, respectively.
Since then, the pharma company has not published any financials for the 2024-25 fiscal year, as the listed SME firms are enjoying relaxation to publish quarterly financials.
In FY24, it had paid a 12% cash dividend to its shareholders.
IPO fund utilisation
According to the latest auditor report regarding fund utilisation, it utilised the full fund raised through the qualified investors offer.
Of the funds, it utilised a substantial amount of funds in loan repayment, building constructions, and procuring local machineries and accessories of Tk1.67 crore, Tk1.24 crore and TkTk1.19 crore, respectively.
