IBN SINA to sell 40% stake in consumer unit

The IBN SINA Pharmaceutical Industry Ltd, one of the leading drug makers in Bangladesh, has planned to sell its 40% stake in its consumer project unit subject to the approval of the relevant regulator and its shareholders.

The board of directors has decided to sell out the investment shares equivalent to the cost of Tk 6 crore in the IBN SINA Consumer Products Ltd, said the company in a filing with the Dhaka Stock Exchange on Wednesday.

In 2017, it increased the investment in its consumer project unit. Radhuni and Ruchi are the top brands of the IBN SINA Consumer Products.

IBN SINA share declined 5.31 per cent to Tk272.90 a share. In the last year, its share price moved between Tk220 to Tk306.9.

The drugmaker reported a 24 per cent to Tk48.93 crore in net profit in the fiscal FY21 compared to the same period a year ago due to higher sales during the pandemic.

“The company decided to pull out its investment from its consumer unit because the investment has not been considered financially sound right now,” said an official of the company.

After selling the stake, the fund will be invested in a suitable project, he said.

According to the DSE, the company’s net sales and profits increased over the last five years. Currently, it exported medicines to 10 countries. It has more than 450 types of drugs.

The company declared a 47 per cent cash dividend to the shareholders for the financial year ended on June 30, 2021. This is the highest ever dividend declaration by the company.

The company’s consolidated earnings per share (EPS) stood at Tk15.66 for the FY21, up from Tk12.56 seen in the previous fiscal year.

The annual general meeting (AGM) is scheduled for November 18 for the declared dividend approval of its shareholders. The record date for the entitlement of the dividend is October 18.

The IBN SINA Pharmaceutical Industry also decided to purchase a plot measuring an area of 16.75 decimals located at Narayanganj’s Fotullah for constructing sales depot at the cost of Tk1.50 crore, excluding registration fee and other relevant charges.

The company was listed in 1989 under the ‘A’ category and incorporated in 1983. The company distributed cash and stock dividends regularly. It has Tk146 crore in reserve and the paid-up capital is more than Tk31 crore, according to the Dhaka Stock Exchange. The number of shares is 3.12 crore and market capitalization is Tk900 crore as of Wednesday.

Its manufacturing facilities are located at Gazipur, around 56 kilometer away from Dhaka, on about 15 acres of land.