Regulator allows Sena Kalyan Insurance to raise Tk16cr through IPO
The firm wants to invest the fund in the government treasury bonds, listed securities in the capital market, lands, and fixed deposit receipts
Sena Kalyan Insurance's 2020 financials
1. Tk9.43cr net profit in 2020
2. Tk58.05r gross premium
3. Tk97.83cr total asset
4. Tk24cr current paid-up capital
5. Tk19.78cr total reserve fund
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday allowed Sena Kalyan Insurance Company Ltd to raise Tk16 crore from the stock market through an initial public offering (IPO) to strengthen its business.
The firm wants to issue 1.6 crore ordinary shares at a face value of Tk10 each under the fixed price method.
It wants to invest the fund in the government treasury bonds, listed securities in the capital market, lands, and fixed deposit receipts (FDRs).
Out of Tk16 crore, the company will invest Tk3 crore in the government treasury bonds, Tk3.20 crore in listed securities in the capital market, Tk2.5 crore in lands, and Tk6.2 crore in FDR.
Sena Kalyan Insurance is a fourth-generation life insurance company which was established in 2013.
It is engaged in fire, marine, engineering, motor, aviation, and miscellaneous accident insurance.
On 31 December 2020, the net profit of the company was Tk9.43 crore, which was Tk9.83 crore in 2019.
During the time, its earnings per share were Tk3.93 and net asset per share was Tk21.09 crore.
The five years weighted average EPS was Tk2.65.
The gross premium was Tk58.05 crore, while the total asset was Tk97.83 crore in the said period.
Its paid-up capital was Tk24 crore, while the authorised capital is Tk100 crore.
AAA Finance & Investment Ltd is working as the issue manager of the company.
The company cannot declare, approve and distribute dividends before listing, says a BSEC press release.
As per the BSEC's decision, institutional investors with a minimum of Tk1 crore investments in stocks can subscribe to the shares of the company through the electronic subscription system.
Besides, institutional investors of recognised pension funds and provident funds with a minimum of Tk0.50 crore investments in stocks will also be able to subscribe to the shares in the same way.