Meghna Insurance wants to make the Tk16cr public
- Company to raise Tk16cr via IPO
- First quarter net profit was Tk2.67cr
- Total income Tk5.84cr during the period
- Current paid-up capital Tk24cr
- EPS Tk1.11 in the January-March quarter
Meghna Insurance Company wants to increase Tk16 crore of the stock market to strengthen its business.
The insurer has sought approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue an Initial Public Offer (IPO) under the fixed price method.
Once approved, the company will issue 1.6 crore of ordinary shares with a par value of Tk 10 each.
He wants to invest Tk 2.40 crore in government treasury bills, Tk 3.20 crore in listed securities and Tk 9.52 crore in fixed deposit receipts (FDR).
Meghna Insurance Company Limited decided to enter the capital market after obtaining a commission exemption.
The main activities of the company are to carry out all kinds of insurance, guarantee and indemnity activities other than life insurance.
It is active in the fields of fire, maritime, technical, automobile and other insurance.
In the January-March 2021 quarter, the company’s net profit was Tk 2.67 crore, compared to Tk 5.24 crore in the same period a year ago.
Meghna Insurance officials have said the company cannot do good business amid the Covid-19 pandemic.
Meanwhile, its earnings per share were Tk 1.11 and net assets per share were Tk 16.41 crore.
The total income of the company was Tk 5.84 crore and the total assets were Tk 109.74 crore until March 2021.
Its paid-up capital was Tk24 crore, while the authorized capital is Tk100 crore.
According to the audited report for 2020, the company’s turnover was Tk 61.94 crore.
Asian Tiger Capital Partners Investments, Prime Bank Investment, UCB Investment work as the issuers managers of the company.
There are 78 companies in the insurance industry in Bangladesh. Of these, 32 are life insurance and 46 are non-life insurance. Fifty-one companies are listed on the local stock exchanges.
Experts have long said that Bangladesh is one of the most untapped insurance markets in terms of penetration rates.
Awareness and a strong insurance service culture behind the business activities can help the industry to thrive.