DFCC’s Rs. 6 b Rights Issue goes undersubscribed by Rs. 574 m

Monday, 23 May 2022 03:21 - - {{hitsCtrl.values.hits}}

The DFCC Bank’s Rs. 6 billion Rights issue had been undersubscribed to the tune of Rs. 574 million.

When the issue closed last week, subscription of Rights and additional applications amounted to Rs. 5.42 billion or Rs. 98.66 million shares.

The basis of the Rights issue was 12 new shares for every 37 held at Rs. 55 per share.

It entailed the issuance of Rs. 109.247 million shares. The proportion was post allotment of shares in respect of the scrip dividend of 1 for 19.633 announced in mid-February.

The Rights Issue began in late April and concluded last week. DFCC shares closed on Friday at Rs. 42.70 whilst it ended April at Rs. 43.30. Net asset per share as of 31 March was Rs. 118.83, down by 22% from a year ago.

DFCC said shares that remain unsubscribed after allocation to shareholders who applied for additional rights (in full subscription of their rights) will be allotted by the Board at the discretion to any person or persons.

The objective of the Rights issue was to increase the Tier 1 capital of the bank to accommodate and support the bank’s future business expansion plans.

Major shareholders of DFCC Bank as of 31 March were HNB (15%), BOC (12.5%), M.A. Yaseen (10%), SLIC (9%), AEPF (8%), Melstacorp (7.3%), and Seafeld International (5.8%). Public float was 62.5% held by 10,510 shareholders.