People’s Leasing records staggering net profit exceeding Rs. 2.5 billion

People’s Leasing recorded a groundbreaking achievement in the first six months of FY 2011/12 by achieving a net profit exceeding Rs. 2.5 b.

Constructive macroeconomic features, coupled with a higher level of grantings and better management of overheads were key reasons behind the operational performance flourishing within the first half of the year.

On 30 September 2011 the company’s lease, hire purchasing and loan portfolio increased to a staggering Rs. 75 b, which is a growth of 35% from the latest financial year ended 31 March 2011.

Whilst thriving on its core values of strength, stability and sustainability, even amidst the prevailing downturn of the Colombo Stock Exchange, People’s Leasing emerged victorious with a successful completion of its IPO with an excess demand of Rs. 2.3 b.

A total of 390 million shares were offered to the public at Rs. 18 each on 3 November 2011 and the issue was oversubscribed by 1.3 times within a few hours of the day of issue. This marked the milestone for being the second-largest IPO in the history of Sri Lanka to raise an amount exceeding Rs. 7 b.

There is no question or doubt in the demonstration of the high level of confidence placed by the local as well as foreign investors in the company’s stock and the future growth is clearly apparent with the outstanding performance over the years.

Whilst the primary objective of the IPO was to be listed according to specific directions of the Central Bank of Sri Lanka, the funds raised will be used to facilitate the ambitious lending plans of the company and to smoothen the course of low cost borrowing.

The IPO was engineered with ease and executed impeccably with support and encouragement from People’s Bank.

Despite the recent fluctuations in a highly volatile market, People’s Leasing emerged victorious towards the end of the first half of the financial year with a remarkable growth in performance compared with the corresponding previous year.