Thursday Dec 05, 2024
Wednesday, 12 May 2021 00:27 - - {{hitsCtrl.values.hits}}
Softlogic Finance Plc (SFL) has announced plans to raise Rs. 2.24 billion via a Rights Issue to boost its capital.
The company’s Board has resolved to issue five new shares for every six held at Rs. 10 each. The move will entail issuance of 223.966 million new shares. The current stated capital is Rs. 4.5 billion.
Softlogic Finance said that the funds raised via Rights will enable it to infuse fresh capital, to strengthen the Tier 1 Capital based on the Company’s forecasted business expansion during FY22. This is whilst being in compliance with the Capital Adequacy Requirements up to 1 July 2022 as stipulated by the Finance Business Act Directions No. 3 of 2018.
The Rights Issue is subject to the approval of the Colombo Stock Exchange and shareholders.
SFL’s parent Softlogic Capital Plc, which owns an 85% stake in the subsidiary, has agreed to take up fully its Rights entitlement and to further subscribe fully for any unsubscribed Rights so that the issue would be fully subscribed.
Separately Softlogic Life Insurance owns 5.8% and Softlogic Holdings 1.15% in SFL. Public shareholding in SFL is 7.6% held by 1,670 shareholders.
The highest share price of SFL in the quarter ended 31 December 2020 was Rs. 13.80 and the lowest was Rs. 10.60 and closed at Rs. 11.70. Net assets value per share is Rs. 11.50, down from Rs. 9.56 a year earlier and Rs. 19.74 as at end FY20.