Former Indo-Bangla Pharma director to sell shares in conflict with current board

Failing to regain his seat on the board of Indo-Bangla Pharmaceuticals, its sponsoring shareholder and former director, Bellal Khan, has said he is ending his ties with the drugmaker.

He will sell his 3.03% stake in the company on the Dhaka Stock Exchange (DSE) block market, and Indo-Bangla managing director AFM Anowarul Huq has said he will buy those shares.

Contacted by telephone, the businessman declined to comment on the matter.

Previously, another sponsoring shareholder, Amin-Ur-Rashid, also got rid of his stakes in the company for the same reasons.

A senior company executive said Amin-Ur-Rashid and Bellal Khan wanted to be elected as directors at an annual general meeting held recently, but the board did not give them the opportunity.

A former director of the company, seeking anonymity, said the current board made the company family-owned by removing them both from the board in fiscal 2018- 2019.

“We activated the once-broken company and also took it public,” he added.

Indo-Bangla Pharma is one of the oldest drug producers in the country which started its operations in 1954 in Barishal as Indo-Pak Pharmaceuticals Works.

At present, its current managing director, AFM Anowarul Huq, is running the company with his mother and sisters, the former director claimed.

The Investment Corporation of Bangladesh (ICB) owns a large number of shares in the company and has appointed a director to the board, but the director of the ICB is not fully concerned with the pharmaceutical sector, a- he added.

By order of the High Court in 2017, the Drug Administration had suspended the company’s antibiotic production license.

The ban came after claims of its production of substandard drugs were proven.

But in April last year, the Drug Administration lifted the ban following an appeal from the company.

In the first three quarters of FY 2021-22, its revenue fell by 27% to Tk 43.52 crore, and net profit also fell by 20% to Tk 7.16 crore, compared to the previous year in the same quarter.

The company paid 4% cash and 3% stock dividends to its shareholders for FY21.

The latest closing price for the company’s shares was Tk 16.9 each on Thursday at the DSE.

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