Watch Amana Takaful (ATL)

Quibit · 1 Watch Amana Takaful (ATL) Mon Jan 24, 2011 10:36 am

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Amana Takaful PLC engages in the life and general takaful insurance businesses primarily in Sri Lanka and Maldives. It offers a range of general insurance products, including Total Drive, Travel Pal, My home, Fire Takaful, Business Cover, Easy Marine, and Navodaya. The company also provides medical takaful products comprising Hale & Hearty Young Minds, Hale & Hearty Young Adults, Hale & Hearty Easy, and Hale & Hearty; and family takaful products consisting of Education Plan, Takaful Secura, and Secura Gold, as well as Secura Platinum Plan. It offers its products and services for individuals, families, and businesses. The company was founded in 1998 and is headquartered in Colombo, Sri Lanka. Amana Takaful PLC is a subsidiary of Amana Investments Limited.

Monster · 2 ATL - Right Issue Tue Jan 25, 2011 6:31 pm

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ATL has announced 1 for 1 right issue @ Rs. 1.50. Looks attractive!

http://www.cse.lk/cmt/upload_cse_announcements/9641295952526_.pdf

In the recent past, we have noticed once the announcement of right issue, share price has dropped (Ex CSEC, MARA, BBH). Can we expect the same to ATL?

Quibit · 3 Re: Watch Amana Takaful (ATL) Tue Jan 25, 2011 6:47 pm

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Hey Monster,

Good work! hope you collected enough so that you could sell tommorro at a profit! Insurance business takes sometime to grow, once it get there sky is the limited. Look at shares of the other insurance companies today. ATL got unique products and services.

Quibi

Analytic · 4 Re: Watch Amana Takaful (ATL) Wed Jan 26, 2011 11:27 am

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The Board of Directors of Amana Takaful PLC have opted to go for a Rs.750 million rights issue offering 500,000,360 new shares, subject to shareholder and regulator approval.

The proportion in which shares are issued will be one share for every one existing share. The proceeds from the rights issue is to be utilized for increased capital requirements by the regulator under its proposed capital plan and for future expansion strategies.

The current stated capital of the company is Rs. 500,000,360 and the issue and listing of shares would be done once approval has been obtained from the CSE and the Shareholders.

Each new share would be priced at Rs.1.50. Amana Takaful PLC, a subsidiary of Amana Investments, engages in life and general takaful insurance businesses primarily in Sri Lanka and Maldives. Amana group's another subsidiary, Amana Bank Limited, recently obtained the regulatory nod to conduct commercial banking operations in Sri Lanka.

hotstock · 5 Re: Watch Amana Takaful (ATL) Sun Jan 30, 2011 10:53 am

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I think it may come down below 3 levels when the XR dates are closer..

econ · 6 Re: Watch Amana Takaful (ATL) Sun Jan 30, 2011 11:06 am

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I think it may come down to around 2.50..may be further low if directors do not involve it.

StocksWatch · 7 Re: Watch Amana Takaful (ATL) Fri Apr 01, 2011 11:44 am

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econ wrote:I think it may come down to around 2.50..may be further low if directors do not involve it.

Hi econ, looks like your prediction actually came true following the XR date.

Also we can note that there is further reduction in this share price recently and now it is trading around Rs. 2.00.

The price before XR date was around Rs. 3.30-3.40. Their rights issue is 1:1 for Rs. 1.50. So the average cost after subsribing to rights for someone who bought this share just before XR date will be as follows.

(Rs. 3.30 + Rs. 1.50) / 2 = Rs. 2.40

Do we know any particular reason for the reduction of this share price to Rs. 2.00 recently?

I know they have not produced attractive results as per their latest financials for Dec 2010. The loss has increased and also their NAVPS is something like 22 cents if I am not mistaken.

But knowing these results, it was trading well above Rs. 3.00 prior to XR date.

Also there were some positive news recently that they are to get banking licence, they obtained some ISO certification, etc.

Like to hear about this company if anybody has done any research/analysis.

smallville · 8 Re: Watch Amana Takaful (ATL) Fri Apr 01, 2011 8:39 pm

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With the additional shares in the market the no of shares get doubled.. so EPS gets diluted accordingly.. This shud have been 1 right for 4 shares or a similar one.. then the price wont dip this much..

Chabbi · 9 Re: Watch Amana Takaful (ATL) Sat Apr 02, 2011 11:16 am

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smallville wrote:With the additional shares in the market the no of shares get doubled.. so EPS gets diluted accordingly.. This shud have been 1 right for 4 shares or a similar one.. then the price wont dip this much..

Im agree with U smallville

But they need money to expand there business. But Aftr rights shares ame to market & aftr certain period thy would peak up. Because entire ATL on good track with my knwledge.

Aftr bank establishment ... thy wud peak up...

Monster · 10 Re: Watch Amana Takaful (ATL) Sat Apr 02, 2011 1:43 pm

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Chabbi wrote:

smallville wrote:With the additional shares in the market the no of shares get doubled.. so EPS gets diluted accordingly.. This shud have been 1 right for 4 shares or a similar one.. then the price wont dip this much..

Im agree with U smallville

But they need money to expand there business. But Aftr rights shares ame to market & aftr certain period thy would peak up. Because entire ATL on good track with my knwledge.

Aftr bank establishment ... thy wud peak up...

ATL is the least attractive share in the insurance sector. Last two financial statements are not healthy. NVPS is 22 cents as of 31 December, 2010 (Before right issue). Hope they will come up with the better result with the money they got from the right issue.