The Bangladesh Securities and Exchange Commission (BSEC) has fined five directors of Dominage Steel Building Systems Limited Tk 1 crore each over alleged irregularities in the use of initial public offering (IPO) funds, concealment of information and fraud.

The regulator has also fined the company’s former Chief Financial Officer (CFO) Md Zillur Rahman and former Company Secretary Md Zamir Hossain Chowdhury Tk 5 lakh each. The total amount of fines stands at Tk 5.10 crore.

According to the BSEC’s inspection and investigation findings, Dominage Steel raised Tk 30 crore through its IPO in 2020 by issuing 3 crore shares at Tk 10 each. The funds were supposed to be used for specific purposes, including building construction, electrical installation, plant and machinery purchases, and IPO-related expenses.

However, the investigation found several irregularities in the use of the funds. The company allegedly changed the purposes of the IPO proceeds without obtaining the required prior approval from general shareholders.

The five directors fined Tk 1 crore each are Chairman Engineer Mohammad Shamsul Islam, Managing Director Engineer Mohammad Rafiqul Islam, Director Sujit Saha, Director Rakibul Islam and Director Abul Kalam Bhuiyan.

The BSEC said the company allegedly concealed material information from investors and attempted to obtain shareholder approval through proxy votes bearing forged signatures.

One major irregularity involved the purchase of a dredger named “CSD Dominage-3” for Tk 14.73 crore without prior approval from general shareholders. The dredger was purchased in 2021, but according to the investigation, it generated no business income through 2024 and was not used for business operations.

Questions were also raised about the manufacturer and price of the dredger. Company documents identified Sundarban Shipbuilders as its manufacturer, but the shipbuilder reportedly informed the BSEC in writing that it had not manufactured the dredger.

The investigation further found that two of Dominage Steel’s factories, located in Ashulia, Savar, and Palash, Narsingdi, had remained closed for a prolonged period. The company allegedly failed to disclose the information to investors, which the regulator considered a violation of rules governing the disclosure of price-sensitive information.

The BSEC also found evidence of alleged misappropriation of around Tk 3.27 crore from IPO funds by showing unusually high construction costs for expanding a factory shed in Ashulia.

The commission has ordered the fined individuals to deposit the penalties with the BSEC within 30 days through bank drafts or pay orders.

Dominage Steel, a ‘B’ category company, has paid-up capital of Tk 102.60 crore, comprising 10.26 crore shares. As of August 31, 2026, sponsors and directors held 30.20% of the shares, institutional investors 8.08%, foreign investors 0.02%, and general investors 61.70%.