The Bangladesh Securities and Exchange Commission (BSEC) in a recent inspection found the factory of Ratanpur Steel Re-Rolling Mills Ltd (RSRM) closed.
"An enquiry team, formed by the BSEC, visited the factory of Ratanpur Steel Re-Rolling Mills, in which operations of the factory were found closed," according to a disclosure posted on the Dhaka Stock Exchange (DSE) website.
The stock market regulator earlier formed an inquiry committee to find out the company's anomalies in debt capital, related party transactions, and overall performance.
The officials concerned and senior executives of the company could not be reached over phone for their comments in this regard.
Meanwhile, following the news, the company's share price plunged by 1.0 per cent to close at Tk 19.80 on Sunday, as investors released their holdings to avoid further loss.
The company's shares traded between Tk 18.40 and Tk 36.80 in the last one year at the DSE.
The engineering sector company, which was listed on the stock market in 2014, reported a loss of Tk 3.75 per share for the year ending on June 30, 2021, as against the profit of Tk 1.05 per share for the previous year.
Accordingly, the company declared 'no' dividend for the year ending on June 30, 2021. In 2020, the company paid a 10 per cent cash dividend.
The Chittagong-based steel manufacturer raised Tk 1.0 billion by floating 25 million ordinary shares of Tk 10 each at an offer price of Tk 40, including a premium of Tk 30.
According to media reports, a Chattogram court issued a rule in this January, barring the RSRM managing director from leaving the country, in connection with a case filed for defaulting loan of over Tk 3.12 billion.
The company's paid-up capital is Tk 1.01 billion and authorised capital is Tk 5.0 billion, while the total number of securities is 101.18 million.
The sponsor-directors also failed to hold a mandatory 30 per share of the company from February 2022.
The sponsor-directors own 29.93 per cent stake in the company, while the institutional investors own 33.51 per cent, and the general public 36.56 per cent as on March 31, 2022, the DSE data showed.
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