LOLC wants unusual NIFL share price movements probed

Following Securities and Exchange Commission (SEC) going on record saying that they had begun looking into the unusual share price fluctuation of LOLC Development Finance PLC (NIFL), the company’s Chairman Kapila Jayawardena, yesterday had written to the CSE requesting to probe the matter to address any regulatory concerns.

Previously in a letter dated June 28, Jayawardena, who is also the Group Managing Director of LOLC Holdings PLC, informed the CSE that the company had not withheld any price sensitive information, which could have influenced the drastic rise of NIFL share price.

In his latest letter to the CSE, Jayawardena said, “Considering the increase in the share price of the company, we further wish to state that we cannot attribute any specific reason for shares of LODF (NIFL) to continue to increase compared to the share prices of other listed entities of the group.”

“Under these circumstances you may look into this matter to address any regulatory concerns with regard to unusual trading activity,” Jayawardena said in his letter dated June 30, addressed to CSE’s Chief Operating Officer Renuka Wijayawardhane. After the news report by Mirror Business quoting an SEC official that the regulator was looking into the unusual share price rise of NIFL, the NIFL share plunged 25 percent yesterday to Rs. 524.50.

NIFL has 0.11 percent public free float and despite its bloated share price, the company had net assets per share of Rs.11.82 as at March 31, 2021 and an earnings per share of 65 cents for FY21.