Tapan Chowdhury plans Tk40cr share purchase in Square Pharma

Tapan Chowdhury, managing director of Square Pharmaceuticals PLC, has announced his intention to buy 20 lakh shares of the company through the Dhaka Stock Exchange (DSE), reinforcing management's confidence in the country's largest drug maker amid a volatile market environment.

According to a disclosure filed with the stock exchanges today (5 January), the shares will be acquired at the prevailing market price, either from the public market or through block transactions, within the next 30 working days. 

Square Pharmaceuticals' shares closed 1.01% higher at Tk200.40 on the DSE on the day of the disclosure. At this price, the total value of the proposed purchase stands at roughly Tk40 crore.

Market participants see the move as a strong vote of confidence by the company's top executive at a time when overall investor sentiment remains cautious. Square Pharmaceuticals has historically drawn attention for consistent insider buying, particularly during periods of market uncertainty, which analysts say often provides reassurance to long-term investors.

Since 2020, four directors of Square Pharmaceuticals have collectively bought about 1.51 crore shares of the company, investing close to Tk300 crore. These acquisitions were made between February 2020 and April 2025, highlighting sustained confidence by the sponsor-directors in the company's long-term prospects. 

During this period, Chairman Samuel S Chowdhury purchased 50.25 lakh shares, while Tapan Chowdhury himself acquired the same number. Two other directors, Ratna Patra and Anjan Chowdhury, bought 30.25 lakh shares and 20.25 lakh shares respectively.

Analysts say repeated share purchases by directors are often interpreted as a positive signal for minority shareholders, as they reflect management's belief in the company's intrinsic value and future growth potential. Such moves also align the interests of management more closely with those of public investors and reflect a long-term commitment to value creation.

Square Pharmaceuticals currently ranks as the second-largest company on the DSE by market capitalisation, which stands at around Tk17,600 crore, accounting for about 5.4% of the total market capitalisation of the DSE. 

According to the company's November shareholding statement, sponsors and directors jointly hold 43.59% of Square Pharma's shares. Institutional investors own 14.49%, foreign investors hold 14.60%, and the remaining 27.32% are held by general investors.

The company has also announced an ambitious expansion plan, committing Tk650 crore to broaden its manufacturing capacity and product portfolio. Alongside this, Square Pharmaceuticals declared the highest dividend in its history, announcing a 120% cash dividend for the 2024-25 fiscal year.

Since the outbreak of Covid-19 in 2020, Square Pharma has invested approximately Tk2,000 crore in land acquisition, machinery and balancing, modernisation, replacement and expansion projects to cater to growing domestic and export demand.

For FY25, the company reported a 15% year-on-year rise in consolidated net profit to Tk2,397 crore, driven by strong performances from its subsidiaries and associates. The company's consolidated earnings per share stood at Tk27.04, while net asset value per share was Tk157.88 and net operating cash flow per share Tk19.52, underlining the company's strong financial position.