Desh General Insurance posts 30% profit growth
The share trading of the company will begin on the bourses on Monday under the ‘N’ category
Desh General Insurance Company Ltd posted a 30% increase in its net profit in the July to September quarter of 2020.
The share trading of the company will begin on the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) on Monday under the 'N' category.
Earlier, the company raised Tk16 crore from the stock market through initial public offering (IPO) by issuing shares at a face value of Tk10 each for business expansion.
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It will invest the IPO funds in the capital market, fixed deposit receipts (FDRs) and treasury bonds.
Desh General's trading code will be DGIC both in the DSE and CSE. But, its scrip code will be 25750 in the DSE and 11042 in the CSE.
According to its third quarter financial statement published on Sunday, Desh General's net profit was Tk84.9 lakh in the July to September period and its earnings per share (EPS) stood at Tk0.35.
Its net profit was Tk65.3 lakh and EPS Tk0.27 in the same period of the previous year.
In the nine months from January to September of 2020, the company's net profit stood at Tk1.99 crore while EPS was Tk0.83.
The net profit was Tk1.98 crore and EPS Tk0.82 in the same period of 2019.
Prime Finance Capital Management is the issue manager for the IPO process.
Former Industries Minister Amir Hossain Amu and Bengal Group of Industries Chairman M Morshed Alam are the founders and major shareholders of Desh General Insurance.
In 2019, the company suddenly posted a 52% growth in revenue, which reached Tk30.81 crore. It had never posted such growth in the preceding years.
According to the audited financial report for the year that ended on 31 December 2019, the company's EPS stood at Tk1.36, while its net asset value per share was Tk11.62, excluding revaluation.
