Brown’s goes for Rs. 7.1 b Rights Issue

Brown and Company Plc has announced a Rights Issue to raise Rs. 7.1 billion to settle debt.

The rights will be on the basis of two new shares for every one held at Rs. 50 each. 

The current stated capital of Brown’s is Rs. 2 billion represented by 70.875 million shares and the Rights will involve the issuance of 141.75 million shares. Browns shares yesterday traded between a low of Rs. 68 and a high of Rs. 70 before closing at Rs. 69.90, up by Rs. 1.80. Brown’s net assets per share as at 31 December 2017 was Rs. 253.87 at the Group level as against Rs. 219.55 a year earlier.  At the Group level, short-term loans and borrowings amounted to Rs. 2.6 billion and long-term loans and borrowings were worth Rs. 4.7 billion.

Top six shareholders of Browns are Engineering Services Ltd. (23.4%), Masons Mixture Ltd.

 (19.4%), ETF (9.76%), Browns Holdings (7%), Shanker Somasunderam (5.9%) and LOLC (4.8%). Browns has 2,357 shareholders whilst the public float is 45.32%.