The board of directors of Green Delta Insurance has recommended 24.5 per cent cash and 7.5 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 March 30 at 11:00 am using the digital platform.
The record date is March 8, the company said in a filing with Dhaka Stock Exchange (DSE) on Monday.
The non-life insurer’s consolidated earnings per share (EPS) rose more than 121 per cent year-on-year to Tk 7.16 for the year ended on December 31, 2020, which was Tk 3.23 (adjusted) for the same period of the previous year.
Its consolidated net asset value (NAV) per share stood at Tk 68.95 for the year ended on December 31, 2020, as against Tk 68.33 for the same period of the previous year.
The company consolidated net operating cash flow per share (NOCFPS) was Tk 9.24 for the year ended on December 31, 2020, as against minus Tk 0.43 (adjusted) for the same period of the previous year.
The insurer also informed that consolidated EPS has increased due to a decrease in agency cost by 34 per cent, decrease in claim expense by 31 per cent and decrease in management expense by 18 per cent.
The consolidated NOCFPS has increased due to a decrease in agency cost, decrease in claim payment and decrease in management expense, said the company.
There will be no price limit on the trading of the shares of the company today 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 Dhaka bourse in 1989, closed at Tk 56.80 on Sunday. Its shares traded between Tk 44 and Tk 73.40 in the last one year.
However, its share price soared following the dividend declaration news. Within the first hour of trading, its share price rose 10.62 per cent to reach Tk 63 each at 11:00 am on DSE.
The company disbursed 15 per cent cash and 5.0 per cent stock dividend in 2019.
The company’s paid-up capital is Tk 931.98 million and authorised capital is Tk 5.0 billion while the total number of securities is 93.19 million.
The sponsor-directors own 33.80 per cent stakes in the company, while the institutional investors own 20.36 per cent, foreign investors 8.0 per cent and the general public 37.84 per cent as of January 31, 2020, the DSE data show.