IDLC approves fewer dividends at AGM
At its annual general meeting (AGM), IDLC Finance Limited on Wednesday approved 15% cash and 5% stock dividends, which is a little more than half the amount it had recommended earlier.
According to the website of the Chittagong Stock Exchange, IDLC, one of the country's non-banking financial institutions (NBFIs), recommended a 35% cash dividend on 17 February.
Later on 24 February, the Bangladesh Bank set a cash dividend limit of 15% for NBFIs but did not say what percentage they would be able to pay, including stock dividends.
On 22 March 2021, the central bank issued another circular, extending the dividend ceiling. The new circular said financial institutions should not declare more than 15% cash dividend and in total they can declare only 30% of dividend considering the overall situation.
The company said to comply with the central bank circular, IDLC has approved 15% cash and 5% stock dividends for the year that ended on 31 December 2020.
At the end of last year, the company posted consolidated earnings per share of Tk5.85, which was 45% higher than the previous year.
Last year, its net asset value per share stood at Tk40.41.
On Wednesday, IDLC's share price fell by 5.61% to Tk54.10 per share on the Dhaka Stock Exchange.
Sponsors and directors hold 56.66%, institutional investors 21.79%, foreign investors 12.12% and general investors 9.43% shares of the company, which got listed on the stock exchange in 1992.
