BSEC moves to scrap bar on controversial Appollo Ispat IPOHM Murtuza
The Bangladesh Securities and Exchange Commission has moved to withdraw suspension order on the controversial Appollo Ispat Complex Limited’s initial public offering of Tk 220 crore, BSEC officials said.
The withdrawal of suspension order on Appollo Ispat’s IPO is on the agenda of today’s Commission meeting, a BSEC official told New Age on Wednesday.
The suspension of the IPO, scheduled to be held on March 3, was imposed in February following an intervention of finance minister AMA Muhith.
The finance minister in February advised the BSEC chairman to suspend the IPO of the AICL over allegations of different irregularities.
In the letter, Muhith advised the BSEC to start immediate investigations into the interests of Appollo’s former company directors, to realise taxes from
them, to get the company audited, and to probe its letters of credit to find out possible fund embezzlements.
A Bangladesh Bank report regarding the AICL which was sent to the BSEC on March 31 showed that the company had Tk 437.35 crore loans with 17 bank’s 18 branches.
Of them, the BB inspection team had visited Eskaton branch of Bank Asia, Dhanmondi branch of Southeast Bank, Federation branch of IFIC Bank and found several loans were classified.
The prospectus of the company also showed that it had total bank loans of Tk 437.35 crore.
The AICL showed Tk 149 crore as the floor space value in the Rangs Tower which was demolished by the government in 2007.
The BSEC officials also said that the company did not issue any dividend for its shareholders for the last 17 years.
The company issued placement shares of Tk 107 crore in 2009 but has yet to issue dividend for the shareholders.
‘We hope that the company would be able to issue dividends for the shareholders if the BSEC withdraws the suspension on the IPO. Of the Tk 220-crore IPO fund, we will repay Tk 153 crore loans which will reduce interest burden of the company. The rest amount will be used for setting up plants which will obviously increase the productivity of the company and increase the earning,’ AICL deputy managing director Abdur Rahman told New Age.
‘The company is fighting for compensation against the floor space in the demolished Rangs Tower. If we get the compensation in future, that will be obviously beneficiary for the shareholders,’ Rahman said.
The AICL first submitted its IPO application in the Commission in October 2011 with an offer price of Tk 70, including a premium of Tk 60, to offload 5.71-crore shares to investors.
But the BSEC rejected it as it found a number of false information in the AICL application.
The BSEC fined the company, its auditor firm Joha Zaman Kabir Rashid and Co and the issue manager ICB Capital Management Tk 1 lakh each.
The BSEC also fined the valuer company Moshi Muhith and Company Tk 2 lakh on the same ground.
In October 2012, the AICL again submitted its IPO application and the Commission again found that the company did not submit some necessary documents.
Later, in October 27, the AICL submitted the IPO application to the BSEC setting offer price at Tk 20. But, the company on December 3, resubmitted the IPO application increasing the offer price to Tk 22, Commission officials said.
Allowing a company to increase offer price is an unusual practice which was never done before, the BSEC officials said.
On December 13, just after 10 days of submission of application, the BSEC, after getting the Credit Information Bureau report from Bangladesh Bank, approved the AICL to issue its IPO with an offer price of Tk 22 each share including a premium of Tk 12.
comments powered by Disqus
The Bangladesh Securities and Exchange Commission has moved to withdraw suspension order on the controversial Appollo Ispat Complex Limited’s initial public offering of Tk 220 crore, BSEC officials said. The withdrawal of suspension order on Appollo Ispat’s IPO is on the agenda of today’s Commission... Full story
The Bangladesh Telecommunication Regulatory Commission has decided to increase the power of the auctioneer in the draft auction method for the 3G auction which is scheduled on September 8. BTRC officials said the draft auction process would allow the auctioneer to raise the call price by his own in... Full story
Remittance inflow from six countries significantly decreased in the recently concluded fiscal year compared with that of the FY 2011-12, according to Bangladesh Bank data released on Wednesday. The BB and commercial bank officials told New Age that the ongoing financial recession in the European countries and an increasing trend... Full story
Indian businessmen see their decision to stop exporting onions to Bangladesh as a befitting reply to the latter’s ban on export of hilsa fish to the former. A year after Bangladesh banned the export of hilsa to India, on Monday Indian traders stopped exporting onions to Dhaka, reports Hindustan Times. Full story
Bangladesh Securities and Exchange Commission on Wednesday barred the listed companies from issuing dividends from surplus shown courtesy of asset revaluation. The BSEC, in a separate directive, also made adhering to corporate governance guideline mandatory for the listed companies for issuing rights shares. Full story
Bangladesh Bank, Bangladesh Securities and Exchange Commission and Investment Corporation of Bangladesh on Wednesday finalised the draft memorandum of understanding that the three entities will sign on Tk 900 crore refinancing scheme for stock investors. Full story
The Dhaka and Chittagong bourses on Tuesday signed a memorandum of understanding for setting up a joint clearing corporation for smooth transaction in the stock market and payment for derivative instruments. The MoU was signed at the DSE office on the day after the DSE board had decided to set up a clearing... Full story
India’s ailing rupee hit a new record low on Wednesday after the central bank’s plans to inject 80 billion rupees into financial markets failed to calm investor jitters. The rupee, the worst performing Asian currency this year, fell to 64.60 to the dollar in late afternoon trade, down... Full story
Facebook and other technology giants launched an initiative Wednesday designed to give the whole world access to the internet. The project is entitled internet.org and its goal is to extend internet access to five billion people by cutting the cost of smart... Full story
Dhaka Chamber of Commerce and Industry has signed a memorandum of understanding with the Registrar of Joint Stock Companies and Firms to facilitate the business registration process through a DCCI helpdesk. The DCCI established the help desk on its premises to facilitate trade and businesses. Full story
The Indian rupee extended falls to a fresh record low on Wednesday, while the Indonesian rupiah touched a successive four-year trough due to bond outflows, with its key 11,000 per dollar support level widely expected to be tested soon. Full story
Beximco Pharma managing director Nazmul Hassan MP has won Asia’s Most Influential Leaders Award while Beximco Pharma has been nominated for Asia’s Most Promising Brands Award, said a press release. Nazmul has been selected as one of the top 15 most influential Asian corporate leaders and the award will be given... Full story
Growth-hungry Asian economies which bypass industrialisation and leapfrog from agriculture to the services sector may fall into a ‘middle income trap’, the Asian Development Bank cautioned Wednesday. ADB chief economist Changyong Rhee said the region’s low-income economies should focus on... Full story
Japan may have emerged late last year from its shortest economic contraction in roughly 60 years, findings of a government panel showed, as optimism generated by prime minister Shinzo Abe’s reflationary policies led to robust personal consumption. Full story
China is set to join a group of 50 developed and developing countries in the fight against tax evasion by signing a cooperation agreement at the end of this month, the OECD said on Wednesday. The Organisation for Economic Cooperation and Development, said that China... Full story
The dollar firmed against the euro and the yen on Wednesday, while India’s rupee rebounded from a record low as traders await the release of minutes from the US Federal Reserve’s July meeting. Trade was cautious, with analysts expecting the Fed to soon... Full story
Apex Tannery Trading of the shares of the company will be allowed only in the spot market and block/odd lot transactions will also be settled as per spot settlement cycle with cum benefit from today to 26.08.2013. Trading of the shares of the... Full story