DFCC offers unsubscribed rights to other parties

Becoming the second bank to experience an under-subscribed rights issue in recent times, DFCC Bank PLC yesterday said it is considering allotting the unsubscribed shares to parties acceptable to its director board.

The bank this January announced plans to raise Rs.7.6 billion to further boost its Tier 1 capital by issuing 106 million fresh shares to its shareholders at Rs.72 each on the basis of two new shares for every five shares held.

According to a market filing by the bank yesterday, only 45.8 million rights were subscribed and the unsubscribed rights stood at 60.2 million.

As at 30 September 2018, DFCC Bank’s net assets value per share was Rs. 170.83, down from Rs. 180.60 from end 2017. 

DFCC Bank share closed at Rs.71.10 yesterday. 

The government has little over 35 percent of the issued shares of the bank.