Rupali Life Insurance Company Ltd recommended 12 percent cash and two percent stock dividends for its shareholders for the financial year which ended on December 31, 2019.
It is the highest dividend declared by the company in the last five years.
The company will hold an annual general meeting on October 28 this year for the shareholders' final approval of the dividends and audited accounts. The record date is October 1, 2020.
A senior officer of the company said, Rupali Life Insurance will use the amount of the declared stock dividend to invest in the stock market to enhance the future return on investment.
He also added that the company declared the stock dividend to attain the minimum paid-up capital of Tk30 crore as per the insurance law.
Meanwhile, during the January to June period of this year, the company's life insurance revenue account increased by Tk7.29 crore.
Its total life insurance fund stood at Tk483.73 crore at the end of first half of this year.
Rupali Life Insurance Company Ltd was listed with the Dhaka Stock Exchange (DSE) in 2009 and its paid-up capital is Tk28.84 crore.
The closing price of the company's shares was Tk49 each at the DSE on Monday.
The company's share price decreased by 14 percent in the last several days at the DSE.
Out of total shares, sponsors and directors jointly hold 32.07 percent stake in the company, institutional investors own 19.32 percent and general investors own 48.61 percent shares.