Dialog Finance PLC, the finance subsidiary of Dialog Axiata PLC yesterday disclosed plans to raise little over Rs.701 million through a rights issue.

The company plans to issue 17, 446, 388 ordinary voting shares priced at Rs.40.20 per share in the proportion of 17 new shares for every 89 shares held.

The company said the objective of this issue was to increase its core capital in compliance with Central Bank regulations.

Dialog Finance said it has already received approval from the Central Bank for the rights issue which is subject to shareholder and the Colombo Stock Exchange approval for the listing of shares.

Dialog Finance share closed at Rs.42.10 yesterday, down Rs.2.99 or 6.44 percent.

The stated capital of the company as at September 30, 2019 was Rs.1.67 billion.

Parent Dialog Axiata PLC owns 98.88 percent of the issued shares of the company.