Navana Pharmaceuticals Limited has announced its plan to issue a Tk150 crore bond, with the intention of converting 60% of it, equivalent to Tk90 crore, into shares. The bond will have a duration of five years, and the conversion process will commence in the third year. Each year, starting from the third year until the fifth, the company plans to convert 20% of the bond into shares. To proceed with the conversion, Navana Pharma will hold an extraordinary general meeting (EGM) on 31 July to seek shareholders’ approval, followed by obtaining consent from the securities regulator.
The proceeds from the bond issuance will be utilized for repaying existing bank loans, which amounted to Tk330 crore as of 31 March. Additionally, the company intends to renovate its current production line instead of establishing new facilities, with Tk25.57 crore allocated for modernization and expansion. The remaining investment will be funded internally. During the EGM, shareholders’ approval will also be sought for the change in the utilization plan of the initial public offering (IPO) funds.
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