The board of directors of Rupali Life Insurance Company has recommended 13 per cent cash and 2.0 per cent stock dividend for the year ended on December 31, 2020.
The final approval of the dividend is expected to come during the annual general meeting (AGM) scheduled to be held on October 28 at 10:00 am, through a digital platform.
The record date is set on September 23, the company said in a filing with the Dhaka Stock Exchange (DSE) on Monday.
The life insurer has also informed the “reasons to declare bonus shares” that the consulting actuary of the company has assessed the valuation surplus and recommended a 15 per cent dividend for the year 2020.
The board of the company declared 13 per cent cash and 2.0 per cent stock dividend based on the actuary’s recommendation.
The stock dividend has been declared considering Section 21 and Schedule 1 of Insurance Act 2010 to attain the minimum paid-up capital Tk 300 million out of that valuation surplus which is the accumulated profit of the company.
The bonus shares are not declared from share premium or 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.
The company shall use the amount of the declared stock dividend instead of cash to invest in FDR, Bond and/or stock market to enhance the future return on investment.
There will be no price limit on the trading of the shares of the company today following its corporate declaration.
Each share of the company, which was listed on the DSE in 2009, closed at Tk 76.10 on Sunday. Its shares traded between Tk 42.30 and Tk 93.50 in last year.
The life insurer disbursed 12 per cent cash and 2.0 per cent stock dividend for the year ended on December 31, 2019. In 2018, it had provided a 12 per cent cash dividend.
The company’s paid-up capital is Tk 294.26 million and authorised capital is Tk 1.0 billion, while the total number of securities is 29.42 million.
The sponsor-directors own 32.07 per cent stake in the company, while institutional investors own 9.51 per cent and the general public 58.42 per cent as on July 31, 2021, the DSE data showed.
