Browns Investments to raise Rs.19bn via rights issue

The director board of Browns Investments PLC has decided to raise Rs.19.1 billion through a rights issue.

Accordingly, the company plans to issue 9.57 billion new ordinary voting shares in the proportion of 2:1 at Rs.2 per share.

Browns Investments share closed at Rs.2.20, down Rs.1.20 or 35.29 percent yesterday.

The current stated capital of the company is Rs.11.8 billion represented by 4.78 billion ordinary voting shares.

The company said the rights proceeds will be used to settle debts.

LOLC Group controlled by Ishara Nanayakkara and his privately held investment vehicles have over 57 percent of the issued shares of the company. 

The rights issue is subject to Colombo Stock Exchange approving in principle the issue and the listing of shares and obtaining shareholders’ approval at an Extra Ordinary General Meeting.