Orient Finance to issue Rs. 400 m worth of unlisted preference shares

Orient Finance Plc has decided to issue Rs. 400 million worth of unlisted preference shares to boost its capital.

It is proposed to issue up to four million unlisted redeemable non convertible, cumulative, non-voting, unsecured, subordinated shares in the proportion of one share for 37 held at Rs. 100 each. 

These shares will enjoy a preference on dividend and capital repayment in the event of liquidation with the option to subscribe for additional preference shares and the option to renounce such shares in favour of a third party shares.

A decision to this effect was made by the Board at its meeting on 14 December.

The move is to meet the Tier 2 Capital requirements imposed on the Company by the Central Bank under the Finance Companies Risk Weighted Capital Adequacy Ratio direction of 2006.

The current stated capital of Orient Finance Plc is Rs. 1.378 billion.