Lanka ORIX Finance Co. Ltd. (LOFC) listed on the Colombo Stock Exchange on the Diri Savi Board will commence trading today (7 July).
The reference price of Rs. 5 which is an indicative price in respect of the ordinary voting shares has been decided upon by LOFC. In April this year, Lanka ORIX Leasing Company PLC (LOLC) sold 10% of its 100% holding of LOFC to investors in order to comply with the minimum requirements of the Colombo Stock Exchange to be listed as required by the Central Bank of Sri Lanka (CBSL).
LOFC is one of the largest Registered Finance Companies (RFC) in the country with a lending book of Rs. 20.76 bn, and a deposit base of Rs. 17.39 billion as at 31 March 2011. In June this year the deposit base reached Rs. 20 billion with the company being able to source over Rs. 3 billion worth of fixed deposits and savings accounts in both rupees and foreign currency during this quarter.
LOFC is the only RFC in the country with CBSL approval to offer foreign currency savings and fixed deposit products and engage in inward worker remittances.
LOLC changed its strategic direction and moved towards a diversified conglomerate. Its request from CBSL not to renew its leasing license early this year was approved which assisted in completing this transition. This was in line with LOLC’s strategy of diversification of its strategic investments into sectors other than the traditional financial services business it was known to be involved in. With this strategic move, LOFC benefits from the large book of SME business carried out by LOLC and also the extensive footprint developed by LOLC over a period of time. LOFC operates from more than 50 service points reaching all parts of the country including a significant presence in the North and the East. LOFC branch network is fully equipped to handle all financial needs of the high net worth customer to the micro customer with a wide range of financial products covering leasing, hire purchases, loans, working capital loans, savings, fixed deposits, insurance, margin trading and worker remittance etc.
LOFC has performed extremely well since it commenced business in June 2003 and has expanded its deposit base rapidly, over 70% growth seen in the last financial year. Disbursement of lending too saw exponential growth over the year, with 134% growth seen during the year ended 31 March 2011. The company recorded PBT of Rs. 1.49 bn, a 649% growth over last year. The corresponding PAT was Rs. 1.25 bn with 1229% growth over the previous financial year.
LOFC is led by an emminent Board of Directors, with Rohini Nanayakkara as the Chairperson, Ishara Nanayakkara as Deputy Chairman, Brindley De Zylva as Managing Director together with Kapila Jayawardena, Kalsha Amarasinghe, Rajan Asirwatham, and Dr. Harsha Cabraal functioning as directors.