Dominage Steel applies for regulatory approval to sell 30% shares to Akij 

Listed engineering company Dominage Steel Building Systems Limited has applied to the Bangladesh Securities and Exchange Commission (BSEC) for approval to transfer 30.78 million shares, representing around 30% of the company's total shares, from its sponsor-directors to Akij Resources Limited, Sheikh Jasim Uddin, and Faria Hossain.

Infograph: TBS

The proposed transfer will be executed through an off-market negotiated transaction under CDBL Bye-Laws 11.6 via a matched transaction.

The company's board of directors approved the proposed share sale at its meeting held on 25 April. However, the transaction remains subject to BSEC's final approval. Once the regulatory clearance is obtained and the transfer is completed, a new board of directors representing the incoming investors is expected to assume control of the company's management and operations.

Following the application, BSEC sought a series of documents and information from the company before considering approval of the share transfer.

The regulator requested a tripartite agreement among the buyers, sellers and the financing bank or non-bank financial institution (NBFI), a No Objection Certificate (NOC) from the relevant bank or NBFI, an asset valuation report, a business plan, a plan to protect the interests of minority and general shareholders, a declaration on whether the shares are pledged, particulars of the directors, and any other relevant documents.

Market analysts believe the proposed acquisition could mark a significant turning point for Dominage Steel, which has been struggling with financial and operational challenges in recent years. They say the entry of Akij Resources, a concern of the Akij Group with an established presence in the steel industry, could inject fresh capital, industrial expertise and stronger management into the company, helping revive production and improve operational efficiency.

Earlier, Raihan Kabir, Deputy Chief Financial Officer of Akij Resources, told The Business Standard that although the company viewed the potential acquisition positively, the proposal was still at a preliminary stage and was undergoing due diligence along with financial and legal assessments before any final decision.

Dominage Steel's financial performance remains weak. During the July-December period of FY2025-26, the company's revenue fell 54% to Tk5.75 crore, while it incurred a net loss of Tk0.94 crore. Its loss per share (LPS) stood at Tk0.09 during the period.

A Dhaka Stock Exchange (DSE) inspection conducted in late 2025 found the company's Narsingdi factory closed, although Dominage Steel said its Savar unit remained operational. The company maintained that, as an engineering and construction firm, it does not require continuous production at all factories because much of its work is project-based and carried out at construction sites.

Despite its weak fundamentals, speculation surrounding the potential acquisition has fuelled a sharp rally in the company's stock. Since February 2026, Dominage Steel's share price has surged by about 226%, reaching Tk82.50 at its peak. On Tuesday, the stock closed at Tk79.70 on the Dhaka Stock Exchange.

Listed on the stock market in 2020, Dominage Steel most recently declared only a 0.35% cash dividend for the FY2024-25.