People’s Merchant Finance goes for Rs. 809.7 m Rights Issue

Tuesday, 3 March 2020 00:00 - - {{hitsCtrl.values.hits}}

People’s Merchant Finance Plc has announced a Rights Issue to raise Rs. 809.7 million.

Its Board has resolved to issue 101.22 million ordinary voting shares in the portion of 12 for every 25 held at Rs. 8 per share.

The company’s share price yesterday last traded at Rs. 9, down by 80 cents. The net asset value per share as at 31 December 2019 was Rs. 6.10, up from Rs. 1.69 as at 31 March 2019. The current stated capital of the company is Rs. 2.4 billion.

The Rights Issue of shares is carried out in order to meet the capital requirement of Rs. 2 billion stipulated by the Monetary Board of the Central Bank of Sri Lanka under the directions of Finance Business Act No. 42 of 2011.

The purpose for which the proceeds are to be utilised is to meet the minimum capital requirements envisaged by the Central Bank. The Rights Issue has been approved by the Central Bank but requires a shareholder nod via an EGM.

Sterling Capital Investments holds a 68.2% stake in People’s Merchant Finance while People’s Bank and People’s Leasing and Finance hold 16% and 11.8% respectively. The company has 9,917 public shareholders owning 3.88%.