BSEC rejects B Brothers Garments’ IPO application
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
FRIDAY, MAY 20, 2022
FRIDAY, MAY 20, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
BSEC rejects B Brothers Garments’ IPO application

Stocks

Salah Uddin Mahmud
06 August, 2020, 10:25 pm
Last modified: 06 August, 2020, 10:50 pm

Related News

  • BSEC cancels pre-opening sessions in bourses
  • BSEC launches probe against Abul Khayer Hero and allies
  • BSEC seeks long-term investment data from Premier Cement
  • BSEC roadshow in Qatar postponed
  • BSEC initiates actions against illegal tipsters

BSEC rejects B Brothers Garments’ IPO application

The company wanted to raise Tk50 crore from capital market through fixed price method

Salah Uddin Mahmud
06 August, 2020, 10:25 pm
Last modified: 06 August, 2020, 10:50 pm
Photo: Collected
Photo: Collected

The Bangladesh Securities and Exchange Commission (BSEC) has rejected the initial public offering (IPO) application of B Brothers Garments Co Ltd for violating securities rules.

It wrote to the company and the issue manager concerned on Thursday in this regard.

B Brothers Garments wanted to raise Tk50 crore from the capital market through the fixed price method.

Sources said that the company violated the rules and overstated in its financial statements so that investors would be more interested in buying its shares.

The company has deposited its share money deposit in several bank accounts. But it was supposed to deposit in a separate account. As a result, the company has violated the consent letter condition.

Also, the company has failed to submit the approved layout of the building to be constructed from IPO funds. 

The commission observed that the "Text Line" and "Sportswear" units have contributed 67 percent of the total revenue of the company. If anyone cancels the order, the company may fall in trouble in future. 

The sources also said, the company's audited financial statement as of June 30, 2016, has been signed by only one director which is a violation of Companies Act 1994.

The commission thinks the company is heavily dependent on bank loans that may result in a cash flow crisis as well.

The BSEC also has opined that the company will have a significant impact of Covid-19 pandemic shortly on profitability, which can also threaten the shareholders of the company. 

Shahjalal Equity Management Limited is the issue manager of the company.

Earlier, the regulator also rejected the IPO applications of four other companies – Beka Garments and Textile Ltd, JMI Hospital Requisite Manufacturing Ltd, SF Textile Industries and BD Paints Ltd for showing inflated revenues and profits.

It was found that these companies had inflated revenues and profits, and overstated inventories and assets in their financial statements.

Several issue manager sources claimed that recently the commission has rejected some IPO applications. But all the issues are being cancelled without prior discussion or informing the issue manager and company concerns.   

If the regulator gets any deficit in documentation, it may seek explanation to the companies. But rejection of several issues within a short time will discourage the issue managers to bring new companies in the capital market.

Economy / Top News

BSEC / rejects / IPO application

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • What needs to be done now?
    What needs to be done now?
  • File photo of Dr Debapriya Bhattacharya. Picture: CPD
    Fiscal consolidation is a way out
  • Safety net needs to be expanded by minimising corruption 
    Safety net needs to be expanded by minimising corruption 

MOST VIEWED

  • Troubled Delta Life’s skyrocketing stock: DSE finds Hero, associates behind
    Troubled Delta Life’s skyrocketing stock: DSE finds Hero, associates behind
  • Representational image. Picture: TBS
    Stocks in free-fall amid inflation worries
  • BSEC cancels pre-opening sessions in bourses
    BSEC cancels pre-opening sessions in bourses
  • Former Indo-Bangla Pharma director to sell off shares in conflict with current board
    Former Indo-Bangla Pharma director to sell off shares in conflict with current board
  • Md. Showkat Ali Chowdhury, Chairman of the Board of Directors of Eastern Bank Ltd.( EBL) presides over the 30th AGM of the Bank held today, May 19.  EBL Directors M. Ghaziul Haque, Mir Nasir Hossain, Salina Ali,  Mufakkharul Islam Khasru, Gazi Md. Shakhawat Hossain, K. J. S Banu, Zara Namreen, Ashiq Imran, Dr. Toufic Ahmad Choudhury, Ruslan Nasir, Ali Reza Iftekhar, Managing Director and CEO and Md. Abdullah Al Mamun, Company Secretary are also seen in the picture. The AGM approved 12.50 per cent cash and 12.50% per cent stock dividend for the shareholders for the year 2021.
    EBL declares 25% dividend for 2021
  • Representational Image. Photo: Collected
    GPH Ispat, Fortune Shoes eye jute industry

Related News

  • BSEC cancels pre-opening sessions in bourses
  • BSEC launches probe against Abul Khayer Hero and allies
  • BSEC seeks long-term investment data from Premier Cement
  • BSEC roadshow in Qatar postponed
  • BSEC initiates actions against illegal tipsters

Features

Sketch: TBS

'Food inflation is an unavoidable consequence of currency devaluation'

13h | Interviews
The open-browser-tabs question also tells an interviewer how much of an internet native the job applicant might be. Photo: Noor-a-Alam

The best question to ask a job applicant

13h | Pursuit
Illustration: TBS

Ugly business: Politics in workplace

12h | Pursuit
Illustration: TBS

‘Do you have insurance?’: Life of a life insurance agent

15h | Panorama

More Videos from TBS

Putin's strategies to face Nato

Putin's strategies to face Nato

2h | Videos
How many countries have nuclear weapons and how many are there?

How many countries have nuclear weapons and how many are there?

2h | Videos
Dengue fever is rising, so beware

Dengue fever is rising, so beware

2h | Videos
How a university teacher and PHD holder become farmer

How a university teacher and PHD holder become farmer

6h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

3
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

4
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

5
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

6
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab