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By Apurba Kumar: The long-running Salman F Rahman chapter in Bangladesh’s capital market appears to be drawing to a close, raising hopes among investors and market stakeholders for a fresh start.
The development was reflected in Tuesday’s trading session, when the benchmark index of the Dhaka Stock Exchange (DSE), the country’s main stock market, surged 93 points.
Market insiders believe Salman’s departure from the boards of listed companies of Beximco Group could create an opportunity for the companies to overcome their existing difficulties and regain investor confidence.
Salman F Rahman, the chairman of Beximco Group, was a private industry and investment adviser to former Prime Minister Sheikh Hasina. He was considered highly influential in policymaking and the exercise of state power during the Awami League government.
Following the fall of the Awami League government in 2024, his association with Beximco Group became a major issue for the conglomerate. Its listed companies subsequently faced a range of problems. Salman has also been in custody since then over various allegations.
Against this backdrop, Salman has decided to step down from the boards of the group’s listed companies, a move that is expected to ease some of the pressure on the companies, according to people familiar with the matter.
Beximco Pharmaceuticals, the group’s most profitable listed company, has already informed the Bangladesh Securities and Exchange Commission (BSEC) of the decision. Similar letters are expected from the group’s other listed companies.
In its letter, Beximco Pharmaceuticals said it had initiated the process of reconstituting its board without Salman F Rahman. The proposed board may include three representatives from the company’s sponsors, four independent directors, one director nominated by IFIC Bank and the managing director as an ex-officio director.
The BSEC has reportedly given the company the go-ahead for the proposed restructuring.
Beximco Group entered the capital market in 1986 with the listing of Beximco Pharmaceuticals on the Dhaka Stock Exchange. Subsequently, Beximco Ltd, Padma Textile, Beximco Textiles, Beximco Denims, Beximco Online, Beximco Fisheries and Shinepukur Ceramics were also listed.
Within about a decade of their listing, Padma Textile, Beximco Textiles, Beximco Denims, Beximco Online and Beximco Fisheries were merged into Beximco Ltd. Market stakeholders have widely viewed the consolidation as an initiative spearheaded by Salman F Rahman.
However, there have long been allegations that while the group’s sponsors benefited from such corporate restructuring, ordinary investors suffered substantial losses. The controversies surrounding the companies also eroded investor confidence in the broader capital market, with some investors reportedly losing much of their savings and leaving the market.
Beximco Group also played a role in introducing or popularising a number of financial instruments and corporate transactions in Bangladesh, including mergers, acquisitions, takeovers, debentures, preference shares and sukuk. Salman F Rahman was considered a key figure behind many of these initiatives.
The group’s attempt to acquire GMG Airlines, sell a large number of shares through private placement and bring the airline to the stock market, as well as efforts to take companies such as Apollo Ispat public, also drew criticism.
The failure to repay investors after issuing debentures and the collection of thousands of crores of taka through sukuk issues amid allegations of irregularities have also become controversial chapters in the history of Beximco Group and Bangladesh’s capital market.
Against this backdrop, Salman’s planned departure from the boards of Beximco’s listed companies is being viewed by many investors as a potential turning point.
They hope the move will, at least temporarily, free the capital market from the controversies and uncertainty associated with Salman and give the affected companies an opportunity to restructure, recover and rebuild investor confidence.
