The Bangladesh Securities and Exchange Commission (BSEC) has imposed a total fine of Tk 5.10 crore on five directors and two former senior officials of Dominage Steel Building Systems Ltd over alleged irregularities in the use of initial public offering (IPO) proceeds, concealment of information and fraud.

The regulator fined the company’s chairman engineer Mohammad Shamsul Islam, managing director engineer Mohammad Rafiqul Islam, and directors Sujit Saha, Rakibul Islam and Abul Kalam Bhuiyan Tk 1 crore each. Former chief financial officer (CFO) Md Zillur Rahman and former company secretary Md Zamir Hossain Chowdhury were fined Tk 5 lakh each.

According to the BSEC’s inspection and investigation findings, the company used IPO proceeds to purchase a dredger worth Tk 14.73 crore without obtaining prior approval from general shareholders. The investigation also identified discrepancies in information provided about the dredger’s manufacturer and price, concealment of factory closures, and alleged excessive expenditure under a factory shed expansion project.

The BSEC has directed the individuals concerned to pay the fines within 30 days through bank drafts or pay orders.

Dominage Steel raised Tk 30 crore through an IPO in 2020 by issuing 3 crore shares at a face value of Tk 10 each. According to its prospectus, the proceeds were intended for building construction, electrical installations, plant and machinery purchases, and IPO-related expenses.

The investigation found that the company subsequently deviated from the approved uses of the funds. It also allegedly attempted to obtain shareholder approval for changes in the use of IPO proceeds through concealment of information and forged signatures used to collect proxy votes.

The company purchased a dredger named “CSD Dominage-3” for Tk 14.73 crore in 2021 without prior approval from general shareholders. The dredger reportedly remained unused for nearly three years through 2024 and generated no business income during the period, according to the investigation.

The investigation also found inconsistencies regarding the dredger’s manufacturer. Dominage Steel identified Sundarban Shipbuilders as the manufacturer, but the company reportedly informed the authorities in writing that it had not built the dredger.

The discrepancy raised questions about the accuracy of information submitted to the BSEC and stock exchanges.

The investigation found that Dominage Steel’s factories in Ashulia, Savar, and Palash, Narsingdi, had remained closed for extended periods. The BSEC alleged that the company failed to disclose the information to investors, considering it a violation of regulations governing the disclosure of price-sensitive information.

The investigation also found that construction costs for the expansion of a shed at the Ashulia factory were allegedly overstated, resulting in the misappropriation of around Tk 3.27 crore from IPO proceeds.

Dominage Steel is a ‘B’ category listed company. As of August 31, 2026, its paid-up capital stood at Tk 102.60 crore. Sponsors and directors held 30.20% of its shares, institutional investors 8.08%, foreign investors 0.02%, and general investors 61.70%.