Prime Finance goes for Rs. 864 m rights

Prime Finance PLC plans to raise Rs. 864 million via a six-for-five rights issue at Rs. 20 per share.

Its current stated capital is Rs. 508.5 million and the six new shares for every five held will see issuance of 43.2 million new shares at Rs. 20 each.

The purpose of the rights issue is to raise funds to comply with the minimum core capital requirement stipulated by the Central Bank. 

The rights issue is subject to shareholder and CSE approval. 

Prime Lands Ltd. owns 89.4% stake in the finance company and 906 shareholders own 10.05% stake.