Photo : Collected
The Bangladesh Securities and Exchanges Commission (BSEC) has approved the issuance of Renata Limited, a leading drug manufacturer in Bangladesh’s secured, non-convertible, zero-coupon bond worth Tk 660.15 crore for one to five years.
The pharma company would issue the bond to repay the bank loan. The per-unit price of the bond has been fixed at Tk1 lakh for private placement holders.
The BSEC also asked the company to get listed on the alternative trading board (ATB) of the bourses.
Brac EPL Investments Limited would act as the trustee of the bond, while City Bank Capital would act as the arranger of the bond.
Renata witnessed a 54.8 per cent year-on-year drop in net profit in the fiscal year 2022–23, though its revenue grew by 6 per cent in the year.
The situation, as per the company, is credited to the increase in the prices of raw materials and the rise in energy prices caused by the global dollar crisis. The publicly traded company on Saturday declared a 62.5 per cent cash dividend for FY23 to its shareholders, the lowest in the last seven years. The drug maker’s profit after tax was Tk 231 crore in FY23, down from Tk 511 crore recorded in the previous fiscal year.
According to the pharmaceutical company’s audited FY23 financial report, its net revenue grew by 5.8 per cent, amounting to Tk 3,287 crore against Tk 3,107 crore in FY22. The drug manufacturer was enlisted on the stock exchanges in 1979, and currently its shares are stuck on the floor price of Tk 1,217.90 each.
Messenger/Sanjay/Shahed
