The Bangladesh Securities and Exchange Commission (BSEC) has denied consent to GPH Ispat Ltd for its proposed issuance of preference shares amounting to Tk500 crore.
In a letter dated June 19, 2025, the Commission informed the company that it is “not in a position to accord consent” for the planned capital raising initiative, which involved issuing non-convertible, cumulative, redeemable, and non-participative preference shares.
GPH Ispat had earlier disclosed its intention to raise the funds via preference shares through a corporate declaration disseminated by the Dhaka Stock Exchange (DSE) on October 8, 2024. The capital was expected to support the company’s expansion plans and ongoing financial requirements.
Market analysts said the BSEC’s decision marks a significant setback for the Chattogram-based steel manufacturer, which has been seeking to diversify its funding mix amid tightening credit conditions and rising input costs in the industrial sector.
The regulator’s rejection may stem from concerns over investor protection, according to regulatory officials.
However, GPH Ispat has not issued any public statement regarding the next steps it intends to take following the regulatory setback.
The company, which is listed on both the DSE and CSE, remains one of the key players in Bangladesh’s steel and re-rolling industry.
Shares of GPH Ispat closed 2.33% lower at Tk16.8 apiece.