Eighteen publicly listed companies in Bangladesh have yet to utilize Tk863 crore of the Tk10,402 crore they raised from the capital market through IPOs and RPOs between 2011 and June 2024. While 114 companies fully utilized Tk9,539 crore for their intended purposes, the remaining 18 firms failed to meet investor commitments and extended their project timelines, benefiting from regulatory loopholes. Despite the misuse of funds, regulatory bodies led by M Khairul Hossain and Shibli Rubayat-Ul Islam took no significant action. Some companies cited delays due to the Covid-19 pandemic, economic crises, and rising costs.
Current laws require companies to obtain shareholder approval for changes in fund use, but enforcement has been weak. Notable cases include Aman Cotton Fibrous, Regent Textile Mills, and Kattali Textile, which faced penalties for misusing IPO funds. Although some firms still have time to use their funds, many have delayed without fulfilling their commitments.