Libra Infusions' head office, factory found closed in DSE inspection

Infographics: TBS

A recent field inspection by a team from the Dhaka Stock Exchange (DSE) revealed that both the head office and manufacturing facility of Libra Infusions Limited – the country's largest producer of intravenous (IV) saline – were shut down.

The visit, conducted as part of routine post-listing monitoring, found the company's operations completely inactive, according to a DSE disclosure issued on Tuesday (15 July).

Libra Infusions, a publicly listed pharmaceutical firm, has faced growing investor concern in recent months over irregular disclosures and minimal communication with market regulators. Once renowned for its generous dividends, the company is now considered a risky stock, having failed to publish any financial statements for the past three years.

The lack of transparency has raised serious questions regarding its financial health, operational viability, and compliance with regulatory standards.

In December last year, the company informed the DSE that it still had active gas and electricity connections. However, it acknowledged that financial constraints had severely hampered production.

Attempts by TBS to contact the company secretary today were unsuccessful, with his phone found switched off and no alternative communication channel available.

Despite its small paid-up capital of just Tk2.5 crore, Libra's shares were trading at over Tk791.20 each today. The last available audited statements showed a staggering price-earnings (P/E) ratio of 5,274.67 – over 132 times the generally accepted upper limit of 40 for low-risk stocks.

A senior analyst at an asset management firm told TBS that the low capital base made the stock vulnerable to manipulation, which reportedly occurs two to three times a year.

The Bangladesh Securities and Exchange Commission (BSEC) has already sought explanations from the company regarding its failure to publish financial reports for several years.

Founded in 1985 with technical support from a Swiss firm, Libra Infusions established its factory in Dhaka's Mirpur. In 2009, the company launched a project to construct a second production unit with a Tk84 crore loan from Al-Arafah Islami Bank. However, disputes over disbursement and repayment led to the project's failure and the company's financial decline.

A former Libra Infusions official, speaking on condition of anonymity, told TBS that the bank had earlier invested in Unit 2 at the time. But the project could not proceed on schedule as the lender did not release funds on time, causing losses for the company.

"Since the bank had invested and the losses incurred due to the lender's failure, Libra's managing director did not repay the loan instalments. The company then filed a case against the bank, seeking compensation," he said.

Later in 2015, Al-Arafah Islami Bank filed a lawsuit against Roushon Alam, managing director of Libra Infusions, on charges of threatening bank officials. The lender also filed 13 cases for bounced cheques and another for recovering defaulted loans.

Roushon was arrested in connection with the cases but was later released on bail.

In 2019, the bank issued a notice to sell Libra Infusions' assets in an auction to recover defaulted loans. However, due to a High Court-imposed ban, the auction did not proceed.

In the ongoing tug-of-war between the two parties, Libra Infusions suffered a working capital shortfall, which affected its production, said the former official.

He added that despite being one of the first companies in the country, its business now lags far behind competitors. Moreover, poor corporate governance within the company has contributed to its conflicts with the bank.

Earlier in 2017, the BSEC fined the company's directors Tk12 lakh for non-compliance with financial reporting requirements.