IDL to raise Rs. 129.5 m via Rights

Infrastructure Developers Plc (IDL) has decided to raise Rs. 129.5 million via a Rights Issue of one for three at Rs. 80 per share.

Via the fund raiser, IDL aims to overcome the serious loss of capital as well as capitalise the company to carry out business operations.

Its current stated capital is Rs. 48.57 million and the Rights will issue 1.619 million new shares. The issue is subject to regulatory and shareholder approval.

Currently a shell company, IDL is 81% owned by Navara Capital. Other major shareholders include Lankem Ceylon 8.7%, PCH Holdings 5% and Fly Asia of Malaysia (3.6%).

It has 136.7 million in liabilities including Rs. 88 million due to related parties whilst its total equity is only Rs. 59.3 million owing to Rs. 46 million in retained losses. In FY12, it has posted an after-tax profit of Rs. 6 million.

An agreement between IDL and Navara to purchase 60% shareholding in Serendib Investment Holdings Ltd. is pending shareholder approval at the EGM scheduled for 18 June.