Beximco Pharmaceuticals Limited (BPL), country's leading pharmaceutical company Monday announced that it has entered into a Subscription Agreement with New York-based GEM Global Yield Fund Limited (GEM), for raising Tk 4.60 billion (four hundred sixty crores) by issuing its shares/warrants.
Under the agreement signed on the day, GEM Global Yield Fund Limited ("GEM Global"), the US based private investment group, has agreed to provide the Company with up to totaling Tk 4.60 billion.
The Board of Directors of BPL in their meeting on the same day approved issuance of ordinary shares aggregating up to Tk 4.10 billion and that of warrants aggregating up to Tk 500 million to GEM, totaling Tk 4.60 billion, said a company statement.
Beximco Group Vice Chairman Salman F Rahman said the move is testimonial of international of foreign fund manager to Bangladesh market.
"This reflects the tremendous confidence shown by foreign investors To Bangladesh market," Rahman said.
He said the shares of BPL shall be issued under Variable Pricing Method at 90 percent of the average market value thereof on the Dhaka Stock Exchange Limited (DSE) prevailing at the time of each draw down required by the company from time to time; whereas the warrants shall be issued at Tk 200 (two hundred) per warrant/ share.
The shares/warrants shall be issued to GEM under section 155(2) of the Companies Act, 1994 subject to approval of its shareholders under the said section in their Extra-Ordinary General Meeting (EGM) to be held on 19 February 2009 and the consent of the Securities and Exchange Commission thereto under the Securities and Exchange Commission (Issue of Capital) Rules, 2001.
The moneys so raised (i.e., upto Tk 4.60 billion) shall be used by BPL for its BMRE, diversification and working capital. BPL expects that the proceeds will be used to add further manufacturing capacities at Tk 3.30 billion and the balance at Tk 1.30 billion as working capital.
BPL further expects to increase its turnover and net profit to Tk 1006 (one thousand and six) crores and Tk 203 (two hundred and three) crores respectively in 2010 after adding the capacities and raising the capital.
Most of the additional turnover and profit will come from exports.
The share price of the issue whopped to Tk 172 per share against the face value of Tk 10 Monday on the DSE. The price, however closed lower at Tk 166.70.
The price of the issue was Tk 150 per share on December 28 last.
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