SS Steel Ltd, a publicly listed company, has asked for another nine months till April 2021 for implementing its initial public offering (IPO) project.
A senior officer at the company told The Business Standard, "We could not complete the IPO project in due time because of the worldwide Covid-19 pandemic."
"So, we are seeking a time extension for implementing the project. We need approval from the shareholders and the regulator," he added.
SS Steel manufactures different kinds of mild steel rods.
Earlier in 2019, the company raised Tk25 crore from the stock market through IPO in order to enhance its production.
The expansion project included installing new plants and machineries, constructing a four-storey building and a 60-foot high steel shed in the company's factory situated in Tongi industrial area.
But the company failed to complete the project within the deadline that ended on July 17 this year.
In this circumstance, the board of directors of the company has approved a proposal to extend the IPO project implementation time in a meeting that was held on Saturday evening.
According to the audit report signed by Shiraz Khan Basak and Company, SS Steel was able to utilise only 25% of its IPO fund until July 31, 2020.
Earlier in 2018, the Bangladesh Securities and Exchange Commission (BSEC) approved the IPO of the company.
Meanwhile, in a recent board meeting, the company's board of directors decided to make an equity investment in Saleh Steel to subscribe to 99% of its existing equity shares worth Tk24.75 crore.
Additionally, 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, mainly from the company. It will partly take share money deposits from its directors for funding of the investment.
However, the BSEC will examine the investment by the company in favour of general shareholders.
The securities regulator has recently sent a letter and asked the company to provide information about Saleh Steel Industries Limited.