Friday Nov 15, 2024
Friday Nov 15, 2024
Friday, 2 September 2011 02:48 - - {{hitsCtrl.values.hits}}
The Board of Directors of People’s Merchant Plc yesterday passed a resolution to raise Rs. 450 million via a Rights Issue.
The basis will be four ordinary shares for every five held at Rs.15 per share.
Funds are being raised to comply with the liquidity reserve requirement as per Central Bank directions as well as to retire short term debt and boost company’s lending portfolio.
People’s Merchant share yesterday closed at Rs. 22.50. Net asset per share was Rs. 15.84 as at 30 June, 2011. The company in the first quarter ended on 30 June, 2011 made an after tax profit of Rs. 133.7 million as against a loss of Rs.212.9 million a year earlier. Profit was recorded mainly through income generated from disposal of the subsidiary, People’s Merchant Finance Company Ltd.
The company had a 100% increase in income of Rs. 270 million as against Rs.136 million reported in the previous year’s first quarter. The company was able to reduce the reserve losses of Rs.180 million to Rs.46 million by the end of the quarter.
The total equity of the company increased by 28% to Rs. 604 million compared to the position as at 31 March, 2011. The company was also able to reduce the total borrowings by Rs.580 million during the quarter.
As at June 30, 2011, company’s assets amounted Rs. 3.3 billion, down by 10% from 31March, 2011. Total liabilities had declined by 15% to Rs. 2.7 billion including Rs. 2.3 billion worth of borrowings.
People’s Merchant PLC provides a range of financial services including leasing, hire purchase, trade finance, corporate finance, real estate and gold loans through its corporate office and a network of 10 branches.
Major shareholders of People's Finance include People's Bank (26%), People's Leasing Company (13%), Capital Trust Holdings (7%), Asia Trust Investments (4.6%) and Nimal Perera (3.7%).
