Swarnamahal Financial Services profits rise 10 times, goes for private placement

Thursday, 20 January 2011 00:10 - - {{hitsCtrl.values.hits}}

Swarnamahal Financial Services (SFS) has seen its profits grow by 10 times in 2010 whilst the Company is also planning a private placement next month before listing on the Colombo Stock Exchange (CSE).

EAP Group of Companies Director Nalaka Edirisinghe said SFL in 2010 recorded a before tax net profit of Rs. 82.6 m up from Rs. 8.5 million in 2009.

He further added that the gross income which was Rs.295 m in 2009 had increased by 58% to Rs. 466 million last year.

SFS is also planning to raise Rs. 55.6 million from a private placement of ordinary shares of the Company in February. The number of shares to be issued is 2,780,000 at an issue price of Rs.20 each.

“We have decided to offer an opportunity to our valuable customers for the subscription of the Ordinary Shares of the company. This issue will enable the company to maintain the required public float of 10% from the stated capital in order to list the company on the Colombo Stock Exchange as per regulations stipulated by the Central Bank of Sri Lanka,” Edirisinghe said. The Company last week opened for business in Vavuniya thereby increasing its branch network to 15. The branch in Vavuniya is in addition to Jaffna and Trincomalee and plans are underway to open for business in Batticaloa in March.