Associated Motor Finance Company to raise Rs. 500 m via Rights

Associated Motor Finance Company Plc has announced plans to raise Rs. 500 million via a Rights Issue.

The proportion of the proposed Rights Issue is 10 new for 17 held at Rs. 143 each. The move will entail issuance of 3.49 million new shares as the current stated capital of the company is Rs. 111 million.

Net assets per share is Rs. 210.36 as at 31 December 2020, down from Rs. 219.73 as at 31 March 2020. The share price yesterday closed at Rs. 231.25, down by Rs. 21.75 or 8.6%.

The objective of the issue is to improve the Equity Base of the Company to remain in compliance with the Core Capital and Capital Adequacy Requirements stipulated under the Guidelines of the Central Bank of Sri Lanka and to part finance the growth in the lending portfolio of the Company.

Last month the Company amalgamated with Arpico Finance Company Plc.

AS at 31 December 2020, the largest shareholders included Imperial Import & Export Co. Ltd., (43.19%) and J.P.I.N. Dayawansa (44%). Public shareholding is 11% held by 446 shareholders.