People’s Leasing Plc’s Board yesterday resolved to recommend to shareholders a Rights Issue of one new ordinary share for every two held and three warrants for every 10 rights shares subscribed.
The Company will raise Rs. 567.8 million via issuance of the Rights Issue (22.71 million shares at Rs. 25 each). Its current stated capital is Rs, 819.9 million whilst its public float is 11.49%.
Funds via Rights is to boost capital adequacy to be in compliance with directions issued under the Finance Companies Act and to expand People’s Leasing business activities to strengthen financial position and profitability, the Company’s Managing Director D.P. Kumarage said.
The warrants entitlement will see an issuance of 6.81 million warrants exercisable in 2012 at Rs. 30. Each warrant will have the right to be converted into one ordinary share at the time of conversion. The warrants will ensure a fund flow worth Rs. 204.4 million in 2012.
The proposed Rights Issue with warrants attached is subject to regulatory and shareholder approval.