Beximco Pharma to raise Tk 460cr from GEM

Beximco Pharmaceuticals Limited (BPL) yesterday announced a subscription agreement with GEM Global Yield Fund Limited (GEM Global), USA to raise Tk 460 crore by issuing its shares or warrants.

Bangladesh's pharmaceutical giant approved the issuance of ordinary shares aggregating up to Tk 410 crore and warrants worth Tk 50 crore to GEM, according to a press statement.

The company intends to utilise the capital for its BMRE, diversification and working capital.

“The move is testimonial of international of foreign fund manager to Bangladeshi market and reflects the tremendous confidence shown by foreign investors to Bangladeshi market," said Salman F Rahman, vice chairman of Beximco Group.

The shares of BPL will be issued under the variable pricing method at 90 percent of the average market value on Dhaka Stock Exchange Limited (DSE), whereas the warrants will be issued at Tk 200 per warrant/share.

The shares/warrants will be issued to GEM under the Companies Act 1994, subject to approval of its shareholders in their extraordinary general meeting (EGM) and the approval of the Securities and Exchange Commission.

Beximco Pharma expects to increase its turnover and net profit to Tk 1,006 crore and Tk 203 crore respectively in 2010 as most of the additional turnover and profit comes from exports.