Senkadagala Finance to raise Rs. 362 m via Rights Issue

Senkadagala Finance PLC is to raise Rs. 362.3 million via a Rights Issue to boost its capital.

The Rights Issue will be on the basis of one new share for every 14 held at Rs. 70 per share. 

The move will result in issuance of 5.176 million new shares. The current stated capital of the Company is Rs. 1.587 billion, represented by 72.47 million shares.

The net assets per share of Senkadagala Finance as at 30 September 2020 was Rs. 74.93. The stock last traded at Rs. 92.

Senkadagala Finance said funds raised will help to maintain the capital adequacy requirements in terms of the Finance Companies (Risk weighted capital adequacy, ratio) Direction No 02 of 2006 issued by Central Bank which has approved the Rights Issue.

The company’s Core Capital Adequacy Ratio as at 30 September 2020 was 12.73% as against regulator imposed minimum requirement of 7%. Total Capital Adequacy Ratio was 17.46% (Minimum requirement – 11%) and Capital funds to Deposit Liabilities Ratio was 61% (Minimum requirement - 10%).

The company will propose the Rights Issue for shareholder approval at an EGM shortly.

E.W. Balasuriya and Company Ltd. owns 56.46% whilst family members also hold additional stakes. The public holding is 15.6% held by eight shareholders.