B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has rejected an application from Acme Pesticides Limited, a listed company in the pharmaceuticals and chemicals sector, seeking an extension of time for the utilisation of funds raised through its initial public offering (IPO).

The decision was communicated in a letter recently sent to the company’s Managing Director, according to BSEC sources. The regulator stated that the request was rejected due to the company’s failure to comply with required conditions.

In the letter, the BSEC said that Acme Pesticides violated Condition No. 6 of Part-C of the IPO consent letter issued on September 7, 2021. The breach led to the rejection of the extension request.

The commission also noted that its earlier directive issued on April 15, 2024, remains in force. Accordingly, the company must adjust and manage its IPO fund utilisation in line with that instruction.

Sources said the company had repeatedly sought extensions for the use of its unutilised IPO funds. However, each request was rejected due to non-compliance with regulatory requirements and insufficient documentation.

Acme Pesticides raised Tk 300 million through its IPO in 2021, but a significant portion of its committed obligations remains unfulfilled. Delays in repaying bank loans and the procurement of new machinery, along with concerns over transparency, have prompted the regulator to take a strict stance.

Under IPO conditions, the company was required to repay bank loans within two months of fund collection. However, more than four and a half years later, it has yet to comply with that requirement.