Navana Pharmaceuticals has decided to allocate the proceeds from its initial public offering (IPO) towards expanding and modernizing its existing facilities, as stated on the Dhaka Stock Exchange (DSE) website. Initially, the company planned to construct a new production unit with Tk 23.24 crore from the IPO proceeds, but the board of directors made a recommendation to utilize Tk 13.12 crore for modernizing and expanding the small volume parenteral and ophthalmic (SVPO) facility.
Furthermore, Tk 4.68 crore will be set aside for expanding the general liquid facility by adding a dispensing area, and Tk 5.44 crore will be used for modernizing and expanding the animal health facility. The company also aims to enhance its overall quality control system with Tk 2.34 crore from its own sources.
After conducting a market assessment, Navana Pharma’s board determined that upgrading existing facilities would yield greater benefits compared to establishing a new production unit. While plans for a new utility and engineering building, refurbishing the cephalosporin unit, and repaying loans were initially in place, the focus has shifted towards facility expansion and modernization.
With 52% of the IPO proceeds already utilized, Navana Pharma has a paid-up capital of Tk 107 crore and a reserve of Tk 250 crore. The company’s stocks experienced a 2.53% drop, reaching Tk 111.6 per share.
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