The board of directors of GSP Finance has recommended 5.5 per cent cash and 5.5 per cent stock dividend for the year ended on December 31, 2020.
The dividend recommendation came at its 230th board meeting held on Saturday through the digital platform.
The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on September 28 at 10:00am using the digital platform and subject to approval of the regulatory authorities.
The record date is set on September 7.
The non-bank financial institution's consolidated net profit after tax rose 17.27 per cent to Tk 220.63 million for the year ended on December 31, 2020, from Tk 188.13 million in the same period of the previous year.
The company's consolidated earnings per share (EPS) jumped to Tk 1.55 for the year ended on December 31, 2020, as against Tk 1.32 (restated) for the same period a year earlier.
The company has also reported consolidated net asset value (NAV) per share of Tk 21.90 and consolidated net operating cash flow per share (NOCFPS) of Tk 0.14 for the year ended on December 31, 2020 as against Tk 20.36 (restated) and Tk 3.44 (restated) respectively for the same period of the previous year.
The company said that stock dividend has been recommended in view to utilize its retained amount as paid-up capital for improving the capital adequacy and thereby facilitate future business expansion of the company.
There will be no price limit on the trading of the shares of the company today (Monday) following its corporate declaration.
Each share of the company, which was listed on the Dhaka Stock Exchange (DSE) in 2012, closed at Tk 25.60 on Thursday, rising 4.49 per cent over the day before.
The company's shares traded between Tk 13.50 and Tk 25.90 each in the last one year.
GSP Finance disbursed 10.50 per cent stock dividend for the year ended on December 31, 2019. In 2018, the company provided 18 per cent cash dividend.
The company's paid-up capital is Tk 1.42 billion and authorised capital Tk 2.0 billion while total number of securities is 142.78 million.
The sponsor-directors own 35.51 per cent stake in the company, while institutional investors own 19.27 per cent and the general public 45.22 per cent as of June 30, 2021, the DSE data showed.
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