The board of directors of IPDC Finance limited has recommended 20 per cent stock dividend for the year ended on December 31, 2017, said an official statement on Wednesday.
The board has also recommended raising its paid-up capital through issuance of rights share at a ratio of 1R:2 (1 rights share for every 2 shares held) at Tk 13 each including premium of Tk 3.0 per share on paid up capital, subject to approval of shareholders, securities regulators and complying with the requirements embodied in relevant laws and regulatory authorities concerned.
“Purpose of rights issues is to cope with the business growth and strengthen the capital base of the company with capital adequacy compliances,” the statement said.
The board has also recommended that the authorised capital will be increased to Tk 20 billion from existing Tk 4.00 billion and amendment of Clause-V of the Memorandum of Association and Clause-5 of the Articles of Association, subject to approval of shareholders in the ensuing EGM.
The final approval will come during the annual general meeting (AGM) and extraordinary general meeting (EGM) scheduled to be held on March 25 at 9:00amd and 9:30am respectively. The record date for entitlement of dividend is on February 27. Another record date for entitlement of the proposed rights shares will be notified later after obtaining approval from BSEC.
The company has also reported earnings per share (EPS) of Tk 1.85, net asset value (NAV) per share of Tk 17.11 and consolidated net operating cash flow per share (NOCFPS) of Tk 2.25 for the year ended on December 31, 2017 as against Tk 2.87, Tk 24.36 and Tk (1.76) respectively for the same period of the previous year.
There will be no price limit on the trading of the company’s share trading today (Wednesday) following its corporate declaration.
In 2016, the company also disbursed 20 per cent stock dividend.
Each share of the company, which was listed on the Dhaka bourse in 2006, closed at Tk 48.40 on Tuesday at Dhaka Stock Exchange (DSE).
The company’s paid-up capital is Tk 4.0 billion and authorised capital is Tk 1.81 billion, while the total number of securities is 181.80 million.
The sponsor-directors own 51.05 per cent stake in company, while government owns 21.88 per cent, institutional investors own 14.12 per cent, foreign 1.07 per cent and the general public 11.89 per cent as on December 28, 2017, the DSE data shows.