MBSL to raise Rs. 2.2 b via Rights Issue

Thursday, 10 June 2021 02:00 - - {{hitsCtrl.values.hits}}

Merchant Bank of Sri Lanka and Finance PLC (MBSL) is planning to raise Rs. 2.24 billion via a Rights Issue.

The move will be on the basis of nine new shares for four held, resulting in issuance of 373.2 million new shares at Rs. 6 each. The stated capital at present is Rs. 2.12 billion.

The MBSL share price yesterday closed at Rs. 8.40 and the net asset value as of 31 March 2021 was Rs. 10.42, up from Rs. 8.85 by end 2020.

Proceeds from the Rights will be used for lending purpose of MBSL. As of 31 March 2021, loans and receivables of MBSL was Rs. 27.5 billion, up by 3% from December 2020.

The Central Bank has approved the Rights Issue and it is now subject to shareholder and CSE approval.

Bank of Ceylon owns 81% stake in MBSL. The percentage of shares held by the public as of 31 March 2021 was 25.51% held by 10,900 shareholders.