Senkadagala Finance to raise Rs. 474.5 m via Rights

Senkadagala Finance PLC has announced a Rights Issue to raise to Rs. 474.5 million to boost capital.

The move entails issuance of 8.627 million shares on the basis of one new share for every nine held at Rs. 55 per share. The last traded price of Senkadagala Finance was Rs. 90.53. 

The current stated capital of Senkadagala Finance is Rs. 1.95 billion. 

The Rights Issue has been approved by the Central Bank and awaits clearance from the Colombo Stock Exchange and shareholders. 

The latest move comes hot on the heels of Senkadagala Finance raising Rs. 362.37 million via a 1 for 14 Rights Issue at Rs. 70 per share in March.

E.W. Balasuriya and Company Ltd., (56.46%) and the Balasuriya family controls over a 70% stake in the company. Its public float is 15.64% held by eight shareholders. 

As of 31 March 2021, Senkadagala Finance's Core Capital Adequacy Ratio was 15.08% as against the minimum requirement of 6.5%. It was 15.48% a year earlier. 

Its total assets amounted to Rs. 37.58 billion, up from Rs. 34.4 billion. Of that, financial leases and hire purchases amounted to Rs. 24.7 billion, up from Rs. 24.3 billion. Total liabilities rose from Rs. 29 billion to Rs. 31.6 billion, of which, deposits amounted to Rs. 11.5 billion. Retained earnings grew from Rs. 3.38 billion to Rs. 3.91 billion in FY21.