Appollo Ispat Complex Ltd, widely known for producing "Ranimarka Dheutin," has recommended no dividend for its shareholders for the fiscal year that ended on 30 June, 2019.
The company will hold an annual general meeting after a gap of two years, as per the High Court's approval, on 30 December through a digital platform. The record date is 20 December, stated the company disclosure on the Dhaka Stock Exchange (DSE) website on Tuesday.
After the company disclosed that it is not recommending any dividend, the closing price of the company fell by 9.68% to Tk5.60 per share.
Apollo Ispat does not have an account for the fiscal year 2019-20 yet. It also did not publish any quarterly unaudited report for the last fiscal year.
The company posted revenue of Tk200 crore, net loss of Tk93 crore and loss per share of Tk2.31 for the fiscal year 2018-19.
Appollo's galvanised iron sheet or "dheutin" business was running well till the 2016-17 fiscal year. Its sales was Tk570 crore that year.
But the company's business started to decline, while its competitor companies – PHP Group for instance – was growing in the industry.
PHP Group sells dheutin under the brand name "Arabian Horse." Its sales rose by three times till 30 June 2020.
Appollo's most advanced technology-based plant with 72,000 tonne yearly capacity started commercial operation from 1 April, 2018. The company built the plant by investing Tk204 crore. Its estimated revenue from this project was Tk540 crore.
But the project ran for only 26 days, according to the sources at the company. Now, the company's production has been closed for a year.
The Business Standard tried to contact the company for official comment on the issue, but they did not answer the phone calls.
In 2018, Appollo Ispat's Chairman Deen Mohammad said in a press briefing that Appollo wants to be a market leader in galvanised sheet manufacturing in the country.
"In view of increasing demand for steel products, Appollo plans to include the colour coated sheet in its existing product line," he added.
Deen Mohammad is also the chairman of the Phoenix Group and former director of City Bank.
In 2013, Appollo Ispat raised Tk220 crore through initial public offering (IPO) by issuing 10 crore ordinary shares worth Tk22 each, including Tk12 as premium per share.
But the former Finance Minister AMA Muhith had directed the Bangladesh Securities and Exchange Commission (BSEC) in February 2013 to suspend the company's IPO subscription because of its defaulted loans and other irregularities.
The BSEC suspended the subscription on 12 February and decided to go for further investigation.
But later, the securities regulator finally approved the IPO of the company.
Meanwhile, on 21 October this year, the BSEC fined two corporate directors of Appollo Ispat for secretly selling the company's shares.
The securities regulator said Art International Ltd represented by Momtazur Rahman had sold 8.88 lakh shares while Jupitar Business Ltd represented by Mosfequr Rahman had sold 8.91 lakh shares of the company without any announcement.
Sponsors and directors of the company hold 20.24% shares, while institutional investors hold 22.32%, foreign investors 0.56% and the general shareholders 56.88% shares.