Singer Finance to raise Rs. 2 b via Rights, withdraws debenture issue

Monday, 23 June 2025 04:36 - - {{hitsCtrl.values.hits}}

Singer Finance PLC is to raise Rs. 2 billion via a Rights Issue having abandoned the previously announced debenture issue.

The company has proposed a Rights Issue on the basis of six new ordinary voting shares for every 16 held at Rs. 26.50 per share. The move will involve issuing 75,777,778 new ordinary voting shares as Singer Finance’s shares in issue at present is 1,996,444,457.

Funds raised will be used to improve the Capital Adequacy Ratios of the company and for lending purposes.

The Rights Issue has been approved by the Central Bank and is subject to shareholder approval at an Extraordinary General Meeting (EGM).

The Rights Issue comes following the withdrawal of the proposed issuance of subordinated, listed, rated, unsecured, redeemable debentures, for which the Central Bank approval was obtained.

It was to issue 20 million debentures of a five-year tenor at Rs. 100 each.

Last week, the Singer Finance share price closed at Rs. 33.50, up by Rs. 0.40 from its previous close. Net Assets per Share was Rs. 30.21 as at 31 March 2025.

Singer Sri Lanka PLC holds 80% stake in the company. The public float is 20.05% held by 5,663 shareholders.