The Bangladesh Securities and Exchange Commission (BSEC) has decided to extend the share lock-in period for the sponsors, directors, and placement shareholders of Asiatic Laboratories Limited for an additional three years.
The decision was finalized during the 999th commission meeting held on Tuesday, February 17, 2026, presided over by BSEC Chairman Khondoker Rashed Maqsood. The move follows a series of irregularities regarding the company’s utilization of IPO funds and the unauthorized announcement of a massive real estate project.
Key Reasons for the Extension
According to a press release from the regulator, the extension was triggered by several non-compliances identified in an inspection report by the Dhaka Stock Exchange (DSE):
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Unauthorized Diversion: On September 28, 2024, the company published Price Sensitive Information (PSI) regarding an ambitious plan to construct a 32-story building. This was done without conducting any project evaluation, feasibility study, or obtaining necessary regulatory approvals from RAJUK or environmental authorities.
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Inconsistency with MoA: The BSEC noted that entering the housing or hotel business is not aligned with the company’s Memorandum of Association (MoA), which focuses on pharmaceuticals.
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Failure to Use IPO Funds: Although Asiatic Laboratories raised Tk 95 crore through its IPO in August 2022 to fund business expansion, factory construction, and debt repayment, it has yet to complete the utilization of these funds as per its prospectus.
Terms of the New Lock-In
The commission has mandated that the shares held by 183 individuals and institutions (as listed in the prospectus) will remain locked until the later of the following two dates:
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Three years from the date the existing lock-in was set to expire.
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The completion of the proposed 32-story building and the commencement of its commercial use (subject to obtaining a RAJUK Occupancy Certificate).
“The decision was taken in the interest of general investors and to ensure market stability, as the company attempted to shift focus away from its core pharmaceutical operations without proper authorization,” a BSEC official stated.
Background
Asiatic Laboratories received approval to raise funds through a book-building IPO in 2022. While the prospectus promised the purchase of machinery and factory expansion, the company’s sudden pivot toward real estate sparked concerns among regulators regarding the transparency of its operations and the protection of minority shareholders.
