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Monday, 30 January 2012 00:00 - - {{hitsCtrl.values.hits}}
In what could be considered a significant victory in its forward march, Nation Lanka Finance PLC’s second Rights Issue worth Rs. 500 million in less than a year has been oversubscribed.
The rights issue was on the basis of one for four at Rs. 10 each. Funds raised are to finance the credit and real estate business activities of the Company as well as invest in shares and in subsidiaries.
Attached to the Rights were 30 million warrants with a right to convert in to one ordinary share in July 2013.
Warrants will be issued free with Rights up to the extent of rights subscribed with proportion being three warrants for every five rights subscribed. The exercise price of warrants is Rs. 12 per warrant. This will infuse Rs. 360 million further to the Company in a year’s time.
A spokesman for Nation Lanka Finance said the confidence placed in the company by its shareholders especially when market sentiment is at low ebb is indeed a significant achievement.
The success of this Rights Issue, apart from enhancing the company’s working capital, also contributes to satisfy the Central Bank of Sri Lanka core capital requirement, placing Nation Lanka on a higher echelon than its present standing.
The current stated capital of the company is Rs. 1.3 billion. Major shareholders of Nation Lanka Finance Plc are Investor Access Equities (35%), J. Rudra (7.6%) and Nawaloka Construction Company (7%). The Company has a public holding of 50.2% Subsequent to the takeover of the company in April 2011 by a consortium of investors led by Asanga Seneviratne’s Investor Access and including Jayantha Dharamadasa as Chairman and J. Rudra, the organisation has taken giant strides in the financial services sector. They have raised over Rs. 1.3 billion in new equity and consolidated Nation Lanka.
Envisaging this positive response to the Rights Issue and taking a cue from the rapid strides in the national economic revival, particularly in the rural sector the company’s entire branch network, which is spread across the island, has been given a facelift and in some instances relocated to cater to the growing clientele. The addition of microfinance and pawning to its portfolio of products has seen a tremendous increase in its customer base.
With these positive indicators and the new management’s emphasis on taking its services to the rural masses, plans are underway to further expand the branch network.
Starting 2012 on a winning note and with more innovative products and services lined up to be unveiled in the near future, the company is heading in the right direction and signs have already appeared that Nation Lanka Finance PLC will be a much sought after financial institution in the future.
