Techno Drugs to issue Tk50cr bond to restructure high-cost debt
Revenue falls 11% to Tk232cr in July–March FY26
Techno Drugs Limited has decided to issue a coupon-bearing bond worth Tk50 crore to restructure its high-cost bank loans, as the pharmaceutical company faces declining profits alongside a sharp rise in long-term debt.
The decision was approved at the company's board meeting held on Thursday.
According to a price-sensitive disclosure, the proposed five-year bond will be structured as 25% redeemable and 75% convertible. The initiative is subject to approval from shareholders at an extraordinary general meeting (EGM) scheduled for 24 June, as well as clearance from the Bangladesh Securities and Exchange Commission (BSEC). MTB Capital Limited has been appointed as issue manager and arranger.
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Company Secretary SM Abu Talha Siddik told The Business Standard that the primary objective of the bond is to manage the company's high-cost bank liabilities more efficiently.
The move comes at a sensitive time for the drugmaker, as One Bank PLC has recently filed a case in the Money Loan Court against the company and its directors to recover defaulted loans worth around Tk150 crore. The court has already issued a public notice summoning the directors in connection with the case.
Responding to the legal dispute, Siddik said the company is in discussions with the bank and hopes for a swift resolution.
The latest financing plan comes even after Techno Drugs raised Tk100 crore through an initial public offering (IPO) under the book-building method in 2024.
Audit reports show that Tk31.47 crore from the IPO proceeds was spent on machinery acquisition and construction at its Narsingdi and Gazipur facilities, while Tk30 crore was used to partially repay bank loans, including Tk25 crore to One Bank and smaller amounts to LankaBangla Finance, Alliance Finance, and IDLC Finance.
However, the company's financial position has weakened further in FY26. For the July–March period, revenue declined 11% year-on-year to Tk232 crore, while net profit fell 16% to Tk15.54 crore.
Meanwhile, long-term loans surged to Tk239.56 crore by the end of March 2026, marking a 54% increase compared to the same period last year.
