The board of directors of Islami Insurance Bangladesh has recommended 10 per cent stock dividend for the year ended on December 31, 2020.
The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on August 7 at 11:00 am using the digital platform.
The record date is set for June 7, the company said in a filing with the Dhaka Stock Exchange (DSE) on Wednesday.
The company has also reported EPS of Tk. 2.18, NAV per share of Tk. 15.89 and NOCFPS of Tk. 5.51 for the year ended on December 31, 2020, as against Tk. 1.65, Tk. 14.14 and Tk. 0.86 respectively for the same period of the previous year.
The company has also informed that as per Insurance Act, 2010, section 21, the minimum paid up capital for Non-Life Insurance business is at least Tk 400 million. At present paid up capital is Tk 374.23 million and to comply the minimum paid up capital 10 per cent stock dividend has been recommended by the board of directors subject to approval by the shareholders at the 21st AGM.
The bonus share has been approved from the net profit for the year 2020 and not declared from the capital reserve or revaluation reserve or any unrealised gain or out of profit earned prior to incorporation of the company or through reducing paid up capital or through doing anything so that the post dividend retained earnings become negative or a debit balance.
In 2019, the insurer had disbursed 5.0 per cent cash and 5.0 per cent stock dividend.
There will be no price limit on the trading of the shares of the company today (Wednesday) following its corporate declaration; however, as per the BSEC order dated March 19, 2020, the floor price shall be applicable accordingly.
Each share of the company, which was listed on the DSE in 2009, closed at Tk 58.80 on Tuesday. Its shares traded between Tk 20.90 and Tk 64.40 in the last one year.
Its paid-up capital is Tk 374.23 million and authorised capital is Tk 1.0 billion, while the total number of securities is 37.42 million.
The sponsor-directors own 39.49 per cent stake in the company while the institutional investors own 14.69 per cent, and the general public 45.82 per cent as on April 30, 2021, the DSE data show.