BSRM Steel Mills merges with BSRM

The Bangladesh Securities and Exchange Commission (BSEC) yesterday approved the amalgamation of Bangladesh Steel Re-Rolling Mills (BSRM) and its sister concern BSRM Steel Mills.

After the amalgamation, BSRM's paid-up capital will soar to Tk 298.58 crore from Tk 236 crore, according to a statement from the stock market regulator.

So, BSRM will issue 6.25 crore shares to the shareholders of BSRM Steel Mills instead of 39.44 crore shares, which still have a face value of Tk 10.

The BSEC approved the merger at a commission meeting, where it also gave the go-ahead to the amalgamation ratio of 1:0.288 following a High Court order.

BSRM currently holds a 44.97 per cent stake in BSRM Steel Mills.

BSRM's sales hit Tk 4,577 crore in fiscal 2019-20 and it logged profits of Tk 92 crore for the same period, according to the company's annual report.

The BSEC also decided to void ICB and ICB Capital Management from the trusteeship of two open-ended mutual funds called ICB AMCL Unit Fund and Bangladesh Fund respectively.

As the fund manager of the two funds was ICB Asset Management Company, it was decided to void the trusteeship of ICB and ICB Capital, the BSEC said in a statement, adding that the decision was taken in order to bring transparency in the mutual fund sector.

The trusteeship of the two funds would be transferred to others, it added.