Navana Pharmaceuticals is set to invest Tk 145.27 crore in constructing a new five-storey generic production unit. The company plans to secure Tk 132 crore from internal funds and external sources, with the remaining Tk 13.12 crore to be sourced from its initial public offering (IPO). The facility, spanning approximately 20,000 square feet, will adhere to the World Health Organization’s good manufacturing practices (GMP) to ensure consistent and high-quality production of medicinal products.
This new unit is expected to increase the company’s annual production capacity by approximately 100 crore units, according to a price-sensitive disclosure by Navana Pharmaceuticals. In a change of plans, the board of directors has decided to allocate IPO funds originally intended for the modernization and expansion of a small volume parenteral and ophthalmic facility towards the construction of the new production unit. Approval from general shareholders is required for this change, prompting the company to convene an extraordinary general meeting on May 2.
In 2022, Navana Pharmaceuticals raised Tk 75 crore through the book-building method for the construction of a general manufacturing building, utility and engineering buildings, and the renovation of its cephalosporin unit, along with partial loan repayment. The company reported having utilized 71.31 percent of the total IPO proceeds. Despite a 3 percent drop in shares to Tk 90 on Thursday, the company’s sales for the July-December period of 2023 increased by 20 percent year-on-year to Tk 328 crore, with profits rising by 57 percent year-on-year to Tk 22 crore.