Agrani Insurance moves to issue rights share again

Agrani Insurance Company Ltd has decided to increase its paid-up capital by issuing one rights share against five existing shares.

The company has called an extraordinary general meeting for its shareholders to get their consent to issue the rights shares, according to the Dhaka Stock Exchange. The company would arrange the meeting virtually on 18 April. The record date is 24 April. 

Earlier, in June 2021, the securities regulator rejected Agrani Insurance's rights share offer due to the company's failure to submit a Credit Information Bureau report.

The listed non-life insurer would issue one rights share against every five existing ordinary shares to comply with the insurance regulator's capital adequacy requirement.

The Insurance Development and Regulatory Authority needs non-life insurers to have at least Tk40 crore in paid-up capital and at least 60% shareholding by their sponsors and directors together.

Agrani Insurance has Tk33.98 crore in paid-up capital and only 33.83% of its shares are being held by its sponsors and directors.

The issuance of rights shares will be subject to all the necessary regulatory approvals and after securing those, the company will announce a fresh record date to identify shareholders who can subscribe to the right shares.

If the right shares remain unsubscribed by the existing shareholders, the mandated underwriter will absorb the unsold shares.

Agrani Insurance began its journey two decades ago and got listed on the bourses in 2005. It is engaged in the underwriting business. 

At the end of December 2023, the non-life insurer recommended a 12% cash dividend for their shareholders. 

During the year, its profit after tax stood at Tk7.14 crore and its earnings per share was Tk2.10.

On Sunday, the closing share price of the company stood at Tk37.60 on the stock exchange.