Vallibel Finance goes for Rs. 1 b Rights

Vallibel Finance PLC has announced plans to raise Rs. 1 billion via Rights Issue to enhance its Tier 2 capital base. 

The Company's Board of Directors has resolved to issue five new shares for every 12 held at Rs. 60 each. It amounts to issuance of 17.312 million shares. 

The current stated capital of the company is Rs. 287 million represented by 41.55 million shares. 

Proceeds will be utilised to strengthen the Tier 1 Capital Base of the Company in keeping with expansion and maintaining the capital adequacy requirements as stipulated by the Central Bank. 

The Rights is subject to shareholder and regulatory approvals.

Vallibel Finance share price closed at Rs. 70, down by Rs. 3.40 or 4.63%. Net assets value per share is Rs. 75 as at 31 December 2017. 

Vallibel Investments Ltd. controls 73% stake in the Company. Public holding is 21.5% held by 1,864 shareholders. 

Its Core Capital to Risk Weighted Assets Ratio is 8.51% whilst the minimum stipulated by the Central Bank is 5%. Total capital to risk Weighted Assets Ratio is 11.31% whilst the minimum ratio is 10%.