Second time name change for People’s Leasing Finance

Tuesday, 30 August 2011 00:00 - - {{hitsCtrl.values.hits}}

People’s Leasing Finance Plc has changed its name to “People’s Finance Plc.”

This is the second change in the name of the company which was originally known as Seylan Merchant Leasing Ltd., then owned 84% by Seylan Merchant Bank.

At present People’s Leasing Ltd., owns 88.5% stake in the company.

In the financial year ended on 31 March, 2011, People’s Leasing Finance Plc (PLF) reported excellent results, signifying a revolutionary turnaround achieving a Rs. 227.7 million pre-tax profit from a loss of Rs. 187 million in FY10.

The turnaround follows successful restructuring and rightsizing the company in FY2011. After tax profit amounted to Rs. 106.8 million as against a loss of Rs. 123 million in the previous year.

Asset base grew to Rs. 8 billion from Rs. 2.5 billion.

In accordance with the Central Bank Directions on capital adequacy, PLF went in for a 1:1 Rights Issue at Rs. 25 per share in October 2010. The unprecedented growth and expansion of the company necessitated a further 1:2 Rights Issue also at Rs.25 in 13 in mid 2011 which was coupled with a 3 for 10 warrant issue which attached the option to be converted in 2012 for a share at a price of Rs. 30.