27 September 2021 07:50 am Views - 392
LCB Finance is gearing to going public to raise up to Rs.500 million, offering a 15.82 percent stake or 125 million shares, at Rs.4 each.
Lanka Credit & Business Finance Ltd currently owns an 84 percent stake in the company and post IPO, it will hold 70.58 percent.
LCB Finance is listing on the CSE to meet the dual objectives of fulfilling its regulatory core capital requirement and financing. LCB Finance is a licensed finance company under the supervision and regulation of the Central Bank of Sri Lanka.
LCB has eight branches and its assets worth of Rs.3.7 billion as at end of F/Y 2021. It recorded an income of Rs.461.4 million while pre-tax profit was Rs.100 million. Total shareholders’ funds amount to Rs.2.1 billion, with 4.75 percent returns over equity. LCB has a customer base of over 26,000.
Commenting on the financial condition of the company CEO/Executive Director K.G. Leelananda stated that the company recorded a substantial growth during the period 2020/2021. under the current economic background. As at end-April 2021, the total capital funds reached to Rs.2,175 million. The capital adequacy ratio was 51.78 percent and the total credit portfolio reached Rs.2.7 billion, whilst all branches were operating profitably.