Pelwatte Sugar goes for Rs. 306 m Rights

Pelwatte Sugar Industries Plc is raising Rs. 306 million via a Rights Issue to boost the capital of the company.

The proposed Rights Issue will be on the basis of one for every four held at Rs. 18 per share. The company’s share's last closing price was Rs. 35.60.

The company, which is now under the wings of business leader Harry Jayawardena controlled Distilleries Company, said funds raised will be to increase the capital, considering that the net assets are less than half of the stated capital as at 31 March, 2011.

The stated capital is Rs. 679.7 million.

As at June the net asset per share was Rs. 5 at company level and Rs. 11.11 at Group level as against Rs. 10.49 and Rs. 22.44 a year earlier.

The Group accumulated losses crossed the Rs. 2 billion mark in June whilst for the company it was almost Rs. 1.5 billion.