300 shares of Union Insurance on application of 10 thousand rupees

Senior Reporter: The general investors got 300 rupees shares of Union Insurance against the application of 10 thousand rupees. In other words, they got a maximum of 30 shares with a face value of 10 rupees. And expatriate investors got maximum 22 shares.

Ordinary investors will get back Rs 9,600 and expatriate investors will get Rs 9,690 as BOs as their respective BOs. The results of Union Insurance’s IPO lottery were published on the DSE website on Monday. A total of 4 lakh 71 thousand 984 shares have been allotted as BOs.

According to the audited accounts for the financial year ended September 30, 2020, Union Insurance’s earnings per share (EPS) was shown as 93 paise. And the asset value per share (NAV) is 18 rupees 02 paise.

The company’s IPO application is directed to be distributed among 15 per cent employees, which will remain locked-in for two years. The company’s IPO was approved on June 23 last year. Applications are accepted from interested investors from 14 December to 22 December.

Union Insurance Company will issue 1 crore 93 lakh 80 thousand 904 shares with a face value of 10 taka and collect a total of 19 crore 36 lakh 9 thousand 40 taka.

The company will buy fixed deposit, investment in capital market and floor with the money collected from capital market. This money will also cover the cost of IPO.

Union Insurance started its insurance business in the country on August 24, 2000. According to the rules, the insurance company has to enter the capital market within three years of the commencement of commercial activities, or in fact it has to pay a penalty for every day delay.

However, it took 20 years for Union Insurance. The company has approached the Insurance Development and Regulatory Authority (IDRA) from time to time.

According to the 2019 financial report, Union Insurance has earned a total premium of Tk 44.55 crore during this period. In 2016 it was 39 crore 7 lakh rupees.

There was no quota for the victims in this IPO. Earlier, the quota for institutional investors in IPOs was 50 per cent. The general investors were 30 percent. The victims received 10 percent and for expatriates it was 10 percent.

After the cancellation of the quota for the victims, from now on the quota of institutional investors will be 20 percent. Individuals and expatriates will get 80 percent. And 10 percent mutual fund. However, there is no quota for mutual funds in book building.


Source: Daily StockBangladesh by www.dailystockbangladesh.com.

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