The Bangladesh Securities and Exchange Commission (BSEC) has initiated a comprehensive investigation into the operations of Ratanpur Steel Re-Rolling Mills (RSRM) Limited, a Chattogram-based firm under Ratanpur Group, which has been grappling with substantial default loans. With two of its steel plants shuttered for over two years due to debt constraints and insufficient working capital, the company’s financial turmoil has led to 30 cases being filed against it, amounting to Tk2,500 crore in unpaid loans from ten banks. As a result, the BSEC aims to establish an inquiry committee to assess the business’s status, considering the concerns of investors who have faced dividend cuts over the past years and uncertainty about factory reopenings. The regulatory body intends to appoint independent directors to the company’s board, as well as review its financial records through an appointed special auditor, to safeguard the interests of stakeholders.
Ratanpur Group, a prominent industrial conglomerate in Chattogram, has experienced a downturn since 2020 when two steel factories ceased production due to accumulated electricity bill arrears and inadequate working capital. The conglomerate’s outstanding debts include Tk1,200 crore owed to Janata Bank, Tk650 crore to Sonali Bank, Tk150 crore to Mercantile Bank, Tk80 crore to Global Islami Bank, Tk188 crore to Trust Bank, Tk55 crore to Lankabangla Finance, and Tk24 crore to Prime Finance. The BSEC’s intervention aims to address the financial challenges faced by RSRM.