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Dominage Steel Factories Shut Yet Stock Price Surges 3% - BIZDATA INSIGHTS

Dominage Steel Factories Shut Yet Stock Price Surges 3%

Industry: Building Material, Steel, Stock Market
Company: Dominage Steel Building Systems Ltd
Company Intelligence Tag: Business Insights

An inspection team from the Dhaka Stock Exchange (DSE) found two factories of Dominage Steel Building Systems closed during recent visits. Despite this, the company’s stock rose 3% to Tk 13.8. Dominage Steel, listed four years ago, raised Tk 300 million in October 2020 but failed to utilize the IPO funds within the stipulated 24 months, prompting a request for a nine-month extension. The company’s board has also decided to modify the allocation of IPO proceeds for acquiring plant and machinery. Dominage reported losses of Tk 1.03 million in Q2 and Tk 2.05 million in Q3 of FY’24, with its net profit dropping 97% year-on-year to Tk 1.02 million for the nine months ending March. Annual profit for FY23 plummeted 92% to Tk 4.58 million, leading to a minimal cash dividend of 0.50% for shareholders. Market insiders noted that many companies have struggled to fulfill commitments post-IPO, disappointing investors amid ongoing macroeconomic challenges, including the impact of the Ukraine war.

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