The Finance share issue draws Rs. 1.72 b

Wednesday, 2 February 2011 00:01 - - {{hitsCtrl.values.hits}}

The Rs. 1.6 billion worth share issue of The Finance had drawn Rs. 1.72 billion worth of applications.

The company said when the issue closed last week it had received 2,099 applications requesting for 43.06 million shares worth Rs. 1.722 billion.

The management of The Finance Company (TFC) said the fully subscribed issue saw very good participation from institutional investors and high net-worth individuals as planned.

In an endeavour to re-capitalise the organisation, TFC issued 40,000,000 ordinary voting shares at the rate of Rs. 40 per share. Through this share issue the company was planning to raise Rs. 1.6 billion in capital.

TFC has achieved stability and sustainable growth during the past two years under the guidance of the Central Bank of Sri Lanka and the managing agents of the company, the Merchant Bank of Sri Lanka, which is a fully-owned subsidiary of Bank of Ceylon.

TFC Director and CEO Kamal Yatawara said: “Our organisation is certainly showing steady growth and stability. The over subscription of the share issue as well as the new deposit intake of over Rs. 300 million during this month are clear indicators of the people’s confidence in the organisation. With adequate capital for normal business activities resulting from the share issue as well as the new deposit inflow, the company would be striving to acquire a large stake of the market in the areas of hire purchase, pawning, etc.”

Yatawara also thanked the loyal customers and said that they were a strong force behind the company’s current success.

The company has been achieving successful results in a very steady manner during the past couple of months. According to the overall performance figures of the third quarter of ’10, the deposit new intake of The Finance Company has grown by 47% increasing monthly new deposits up to Rs. 300 million; 85% of its depositors are consenting to their deposits being renewed at maturity.

The pawning business has recorded a growth of 50% during the last quarter. In addition, the real-estate segment (land sales) has grown by a startling 173% giving a boost to the company’s overall revenue.