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Keeping shareholders in the dark for the last five years, Appollo Ispat Complex finally disclosed a huge pile-up of losses worth Tk 7.6 billion, incurred between FY19 and FY23.
Once renowned for its corrugated iron sheets brand "Rani Marka Dheutin," Appollo Ispat in a stock exchange filing on Thursday said the board had approved the audited financial statements for the five financial years together.
The company, however, did not provide any information regarding dividends for these years.
Appollo Ispat even failed to hold any general meeting in the past five years. Its factory has remained shut for more than three years. Subsequently, the stock of Appollo Ispat has been labelled as junk stock last year.
Appollo Ispat, which went public a decade ago, fell into trouble within three years after listing as the then directors of the company embezzled its funds and fled the country.
Upon listing, the company posted handsome profits for three straight years. Its business began to decline in 2017 when its pre-IPO shares became eligible for sale.
Rani Marka Dheutin has been out of the market for at least three years owing to the absence of board members in the company and a lack of proper leadership.
The demise of four of the company's key members, including its chairman Deen Mohammad, and the absconding of another have pushed the company into an abyss.
In a 2020 media interview, Evana F Mohammad, one of the directors of the company, claimed that fund embezzlement by a former director, Md Sirajul Haque, who had been looking after the business, brought the company to its knees.
Mr Haque sold land and 13 truckloads of finished goods without informing others and fled to Canada with Tk 2.50 billion, she said.
The company had filed a case against Mr Haque.
A top official of Appollo Ispat passed on confidential information to a major competitor, said Ms Evana, which was another major factor behind the sorry state of the company.
Meanwhile, the company said last year that its debt burden ballooned to approximately Tk 9 billion (including penal interest). There are additional liabilities of Tk 2 billion.
Citing its tough times and current situation, the company's Vice Chairman Mohammad Shoeb wrote to the Bangladesh Securities and Exchange Commission, seeking government bailout and financial support to resume operation.
In the letter, he claimed the previous top officials and director had acted against the interests of the company.
Appollo Ispat was the pioneer in corrugated iron sheet business in Bangladesh. It started comm ercial operation in 1997 by establishing a modern and sophisticated galvanising line.
It has a plant over 16.8 acres of land at Shimrail under Narayanganj district to manufacture iron sheets. In the wake of growing demand, the company set up another galvanising line in 2002 and a cold-rolled manufacturing unit in 2005.
Appollo Ispat was generating annual revenue of more than Tk 5 billion before going public. It got listed in 2013 by raising Tk 2.20 billion, mainly to repay bank loans of Tk 1.53 billion and set up a new galvanising plant for capacity expansion.
Due to the company's hefty debt burden, some market stakeholders vehemently opposed its listing, including the then finance minister AMA Muhith. He even warned the stock market regulator against approval of the IPO of Appollo Ispat.
The BSEC suspended IPO subscription but withdrew the suspension order five months later.
Meanwhile, Appollo Ispat's stock plunged below Tk 2.50 per share in 2020, from its debut peak at Tk 41 per share. The stock closed at Tk 3.7 per share on Thursday, unchanged from the day before.