SS Steel investment under BSEC’s scanner
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
SUNDAY, MAY 29, 2022
SUNDAY, MAY 29, 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
SS Steel investment under BSEC’s scanner

Stocks

TBS Report
09 August, 2020, 08:55 pm
Last modified: 09 August, 2020, 09:14 pm

Related News

  • SS Steel entrepreneurs to acquire Oimex Electrode
  • BSEC intervention prevents market free fall
  • Shakib’s gold trading firms’ explanation satisfies BSEC
  • BSEC resets circuit breaker at 2%
  • BSEC raises minimum investment limit for eligible investors

SS Steel investment under BSEC’s scanner

SS Steel wants to acquire 99 percent of Saleh Steel Industries’ stakes

TBS Report
09 August, 2020, 08:55 pm
Last modified: 09 August, 2020, 09:14 pm
SS Steel investment under BSEC’s scanner

SS Steel has now come under the scanner of the stock market regulator for its decision to invest around Tk160 crore to acquire 99 percent of Saleh Steel Industries' stakes.

On Sunday, the Bangladesh Securities and Exchange Commission (BSEC), in a letter, asked the listed company to provide information about Saleh Steel Industries Limited.

It also sought a copy of Saleh Steel Industries' feasibility report prepared by an independent third party.

The BSEC asked SS Steel to provide the details of all its directors – including independent ones – who were present at the board meeting, along with the meeting minutes.

The stock market regulator also wanted to know about the share money deposits from its directors.

Moreover, the company did not fully disclose the value of each share of Saleh Steel Industries Limited.

Earlier, the company's board of directors decided to make an equity investment in Saleh Steel to subscribe to 99 percent of its existing equity shares worth Tk24.75 crore.

Also, SS Steel will invest Tk134 crore in Saleh Steel. Following the move, Saleh Steel will issue new shares to SS Steel.

SS Steel will finance its investment from the company and partly by taking share money deposits from its directors.

SS Steel's board of directors made the decision at a time when the steel industry has already been struggling for a year. Things have become more difficult for the industry amid the pandemic outbreak.

Saleh Steel produces and sells rods and coils under its brand name and its annual production capacity is around 84,000 tonnes, according to SS Steel.

Meanwhile, Saleh Steel has not paid its workers' salaries since April – which has been met with protest by its factory workers.

Dr Syed Serajul Huq, a pioneer industrialist, who was the chairperson of Saleh Steel, passed away in January this year.

After completing the acquisition, SS Steel expects to increase its turnover by 100 percent or Tk500 crore yearly; which can increase the profitability of the company substantially.

For the approval of the shareholders, the company will hold an extraordinary general meeting whose venue, date and time will be announced later.

An SS Steel official, preferring anonymity, said, "We have been trying to buy a factory – that is operational – for a long time to increase steel production. And we found Saleh Steel at a low price due to the outbreak."

In the three quarters of the last financial year, the company posted nine percent growth in revenue to Tk306.46 crore. Its net profit stood at Tk42.47 crore and earnings per share Tk1.51 at that time.

The company disbursed a 15 percent stock dividend for the financial year that ended on June 30, 2019.

Listed in January 2019, each share of the SS Steel closed at Tk 10.90 on August 4 on the Dhaka Stock Exchange.

Its shares were traded between Tk8.60 and Tk34.10 in the last year.

The company's paid-up capital is Tk 281.75 crore.

Sponsors and directors had a 32.33 percent stake, institutional investors 19.96 percent, and the general public 47.71 percent in the company on June 30, 2020.

Economy / Top News

SS Steel / BSEC

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

  • Finance projects export fall, remittance rise
    Finance projects export fall, remittance rise
  • Photo: Reuters
    Vinicius, Courtois help Real edge out Liverpool for 14th European crown
  • Women voluntarily joined the peaceful procession and protested by wearing clothing of their own choice. Photo: Trishia Nashtaran
    The unhealthy obsession with what women wear

MOST VIEWED

  • CMSF emerges big to support the market
    CMSF emerges big to support the market
  • BSEC orders three banks to cancel lien with Aman Cotton
    BSEC orders three banks to cancel lien with Aman Cotton
  • This year will be tougher for the financial markets and the economy. Photo: Bloomberg
    Wall St Week Ahead: Stock rally fanned by hopes of Fed 'past peak hawkishness'
  • The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, US, 9 March 2020. REUTERS/Carlo Allegri
    Wall Street jumps on retailer outlook hikes, ebbing Fed fears
  • SS Steel entrepreneurs to acquire Oimex Electrode
    SS Steel entrepreneurs to acquire Oimex Electrode
  • Infographic: TBS
    Higher freight charges help BSC post stellar growth in Q3 profits

Related News

  • SS Steel entrepreneurs to acquire Oimex Electrode
  • BSEC intervention prevents market free fall
  • Shakib’s gold trading firms’ explanation satisfies BSEC
  • BSEC resets circuit breaker at 2%
  • BSEC raises minimum investment limit for eligible investors

Features

Women voluntarily joined the peaceful procession and protested by wearing clothing of their own choice. Photo: Trishia Nashtaran

The unhealthy obsession with what women wear

8h | Panorama
Illustration: Freepik

Bangladesh is on the verge of destigmatising menstruation

12h | Features
Photo: Collected

The death of Davos?

18h | Panorama
A male Baya Weaver beating wings. Photo: Enam Ul Haque

Baya Weavers weave: ‘Must be witnessed to be fully credited’

22h | Panorama

More Videos from TBS

Attorney General's suggestion to reduce case clutter

Attorney General's suggestion to reduce case clutter

13h | Videos
Russian forces take Liman city of Ukraine

Russian forces take Liman city of Ukraine

13h | Videos
JU food prices spike, students suffer

JU food prices spike, students suffer

13h | Videos
5% tax on poultry farmers earning above Tk10 lakh

5% tax on poultry farmers earning above Tk10 lakh

13h | Videos

Most Read

1
Bangladesh Bank GM, DGM’s designation changed
Banking

Bangladesh Bank GM, DGM’s designation changed

2
Corporates go cashless…tax cut on cards
NBR

Corporates go cashless…tax cut on cards

3
Photo: Courtesy
Panorama

Misfit Technologies: A Singaporean startup rooted firmly in Bangladesh

4
British International Investment (BII) CEO Nick O’Donohoe. Illustration: TBS
Economy

BII to invest $450m in Bangladesh in 5 years

5
Representational image. Picture: Pixabay
Economy

Govt raises regulatory duty to discourage imports of 130 products

6
Photo: Collected
Industry

Spanish recycled cotton producer opens new facility in Bangladesh

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