Square Pharma director Ratna Patra to buy 10 lakh shares

Ratna Patra, one of the directors of Square Pharmaceuticals PLC, has announced her intention to purchase 10 lakh shares of the company at the prevailing market price through both the public and block markets of the Dhaka Stock Exchange. 

The disclosure was made on the DSE website yesterday, stating that the shares will be acquired within the next 30 working days.

Following the disclosure, shares of Square Pharmaceuticals closed 0.38% higher at Tk209.80 yesterday and emerged as the most traded stock on the DSE for the day. At the closing price, the total value of Ratna Patra's proposed purchase stands at around Tk21 crore, according to market estimates.

The announcement comes shortly after a similar move by the company's managing director, Tapan Chowdhury, who on 5 January expressed his intention to buy 20 lakh shares of Square Pharmaceuticals through the DSE. 

Market participants view these back-to-back disclosures as a strong show of confidence by the company's top management at a time when the broader equity market continues to grapple with weak sentiment and low liquidity.

Analysts said insider share purchases by sponsor-directors are often interpreted as a positive signal, particularly during volatile or uncertain market conditions. Such moves suggest that management believes the company's share price does not fully reflect its underlying fundamentals or long-term growth potential. In the case of Square Pharmaceuticals, repeated insider buying over the years has helped reinforce investor confidence, especially among long-term shareholders.

Since 2020, four directors of Square Pharmaceuticals have collectively acquired about 1.51 crore shares of the company, with total investments amounting to nearly Tk300 crore. These purchases were made between February 2020 and April 2025, reflecting sustained confidence by sponsor-directors in the country's largest drug maker.

During this period, chairman Samuel S Chowdhury bought 50.25 lakh shares, while managing director Tapan Chowdhury also acquired an equal number. Two other directors, Ratna Patra and Anjan Chowdhury, purchased 30.25 lakh shares and 20.25 lakh shares respectively.

Square Pharmaceuticals is currently the second-largest listed company on the Dhaka Stock Exchange by market capitalisation, valued at around Tk18,500 crore, which represents roughly 5.6% of the total market capitalisation of the bourse.

According to the company's December shareholding statement, sponsors and directors jointly hold 43.59% of Square Pharma's shares. Institutional investors own 14.54%, foreign investors hold 14.52%, while general investors account for the remaining 27.35%.