• Friday, Feb 26, 2021
  • Last Update : 02:23 am

Newly-listed Dominage Steel’s unusual price hike raises BSEC’s suspicions

  • Published at 12:32 am January 7th, 2021
Dominage Steel

Forms committee to probe the matter

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday formed an inquiry committee to investigate the unusual stock price movement of Dominage Steel Building Systems, which made its debut on the bourse last month.

The two-member committee comprising BSEC's deputy directors Saiful Islam and Assistant Director Md. Bony Yeamin Khan will complete the inquiry and submit a report to the commission within 30 days.

The committee will investigate the reasons behind the suspicious share transaction of these companies, and will look into possible insider trading, price manipulation and securities violations if any, said BSEC Spokesperson Mohammad Rezaul Karim.

Shares of Dominage Steel began trading December 2 last year at Tk 10, and in 12 days, their prices zoomed to Tk 43.


And then the price began to fall, when the market itself was having a good run.

Yesterday, shares of Dominage Steel closed at Tk 31.1.

The company saw its profit fall 8.9 per cent year-on-year to Tk 9.2 crore for the financial year that ended June 30 on the back of the massive supply chain disruption brought on by the global coronavirus pandemic.

In its initial public offering prospectus, the pre-fabricated building manufacturer had projected a profit of Tk 12.8 crore for the 2019-20 financial year.

The company raised Tk 30 crore by issuing three crore shares at Tk 10 each for expanding its existing manufacturing facilities in Ashulia by 26,685 square feet (30.1 per cent), electricity installation (7.6 per cent), procurement and installation of machinery (55.8 per cent) and meeting IPO expenses (6.5 per cent).

The reason being, the demand for pre-fabricated buildings are on the rise thanks to the low investment, lesser time and higher safety that the structures provide, according to Dominage Steel’s IPO prospectus.

Prefabricated structures are constructed by manufacturing whole building components, including beams, slabs, columns and walls, and transporting these to the site final where they are assembled, very much like putting lego blocks together.

As the bulk of the work is done at an offsite location, it increases construction speed, ensures consistent quality and reduces wastage.

While prefabricated buildings have been typically used so far in power plants and factories, their use is now being expanded to other areas such as warehouses, gyms, training centres, swimming pools, basketball courts, bus stations, markets, shopping centres, showrooms, police stations, CNG stations and grain storage facilities.

In Bangladesh, other than Dominage eight other companies provide prefabricated buildings.


Facebook 55
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail