Production at Chittagong-based Ratanpur Steel and Re-Rolling Mills Limited (RSRM), which is listed on the stock exchange in the engineering sector, has long since ceased. Due to a number of issues, such as a power outage, a lack of liquidity, and a paucity of raw materials, the company has stated that reconstruction of production is not feasible.
However, the corporation is facing major accusations of loan defaults and money laundering behind these justifications. Because of this, the Bangladesh Securities and Exchange Commission (BSEC), which oversees the stock market, has chosen to look into the company’s overall operations.

BSEC has established a three-member committee to conduct the investigation. The committee is tasked with completing its investigative activities and submitting a report within 60 working days. An order containing 10 instructions was issued to the investigation committee by BSEC’s Market Intelligence and Investigation Division, and the Managing Director of RSRM has been informed about the investigation’s details.

The investigation committee comprises BSEC Deputy Director Md. Shahnoz, Assistant Director Mahmudur Rahman, and Assistant Director Farhana Waleja. This information was disclosed by sources within BSEC.

The committee will examine the company’s factory, office, financial records, and other business operations. Specifically, it will review the violations noted in the previous investigation report submitted to the commission on July 4, 2022; the reasons for the failure to submit financial reports after June 30, 2021; assess any concerns regarding the company’s overall current status and its ability to continue operations; investigate irregularities in the utilization of Tk 30 crore from the IPO as per the prospectus and approval; scrutinize the use of loans and capital; review cases related to money laundering within the company and identify responsible individuals; and investigate the involvement of the company’s senior management, board of directors, and others in breaches of securities laws.

Furthermore, if any financial reports have been prepared post-June 30, 2021, the committee will verify details such as revenue, cost of goods sold, net profit after tax, earnings per share (EPS), net asset value, inventory, advances, deposits, cash, share capital, and both long and short-term liabilities, along with other financial aspects.

The commission, led by the new BSEC chairman Khandaker Rashed Maksud, has adopted a stringent approach towards companies that violate the law in an effort to restore order in the market.

It is worth noting that RSRM was listed on the stock market in 2014 and its production activities were stopped at the end of 2020. Since then, the company has not been able to return to production, and has not even published any financial report or declared a dividend in the last five years.

There is no updated financial information of RSRM after 2021 on the stock exchange website. The company has not declared any dividend for shareholders after reviewing the audited financial report for the last fiscal year ended June 30, 2024.

Despite this, they distributed a cash dividend of 10% in 2020. At the moment, Ratanpur Steel falls into the “Z” category. It has Tk 10 crore 11 lakh 89 thousand 88 in total shares and Tk 101 crore 18 lakh 90 thousand in paid-up capital. As of March 30 of this year, the company’s shareholding information has been updated. It reveals that general investors own 35.99 percent of the company’s shares, institutional investors own 34.08 percent, and entrepreneurs own 29.93 percent.