Central Finance goes for share subdivision, capitalisation of reserves

Central Finance Plc has announced plans for capitalisation of reserves and subdivision of shares of the company.

The CF Board at its meeting on 25 May has resolved to recommend a distribution by the issue of new shares of the company by way of capitalisation of Rs. 769 million from and out of general reserves to shareholders. The basis will be one new share for every 30 held at a consideration of Rs. 110 per share. 

The board also recommended subdividing shares of the company on the basis of two subdivided shares for every single share held.

The subdivision will be before the capitalisation of reserves. 

Post subdivision number of shares of the company will increase to 209,766,666 from 104,883,333. The number of shares to be issued post subdivision is 6,992,222.