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The Financial Express

Pragati Insurance recommends record 30pc cash dividend for 2020

The general insurer’s net profit after tax rises to Tk 267 million


| Updated: June 02, 2021 18:01:03


Pragati Insurance recommends record 30pc cash dividend for 2020

The board of directors of Pragati Insurance has recommended a record high 30 per cent cash dividend for the year ended on December 31, 2020.

It is Pragati Insurer's highest cash dividend recommendation after listing with the Dhaka Stock Exchange (DSE) in 1996. Earlier, the company disbursed the highest 30 per cent stock dividend in 2001, according to data from the DSE.

The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on August 26 at 11:30 am using the digital platform.

The record date is set on June 30, the company said in a filing with the DSE on Tuesday.

The non-life insurer’s net profit after tax rose to Tk 267 million for the year ended on December 31, 2020, registering an increase of 28 per cent, from Tk 209 million of the previous year.

The company has also reported earnings per share (EPS) of Tk 4.07, net asset value (NAV) per share of Tk 53.51, and net operating cash flow per share (NOCFPS) of Tk 8.53 for the year ended on December 31, 2020, as against Tk 3.19, Tk 50.63 and Tk 5.57, respectively for the same period of the previous year.

The general insurer also published its first quarter (Q1) un-audited financial statements on Tuesday. As per the Q1 reports, the company’s net profit after tax for January-March, 2021 period was Tk 82.59 million which was Tk 66.46 million in the same quarter a year earlier.

The non-life insurer’s EPS stood at Tk 1.26 for January-March 2021 as against Tk 1.01 for January-March 2020.

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 DSE in 1996, closed at Tk 81.80 on Monday. Its shares traded between Tk 32.20 and Tk 89 in the last one year.

The company disbursed a 22 per cent cash dividend for the year ended on December 31, 2019.

The company’s paid-up capital is Tk 655.90 million, authorised capital is Tk 2.0 billion and the total number of securities is 65.59 million.

The sponsor-directors own 38.10 stakes in the company while the institutional investors own 18.40 per cent and the general public 43.50 per cent as of April 30, 2021, the DSE data shows.

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