Odel to raise Rs.3.3bn via rights issue

Odel PLC, a subsidiary of diversified conglomerate Softlogic Holdings PLC, announced on Friday (5) its requirement to raise the company’s stated capital.
In a filing to the Colombo Stock Exchange (CSE), Odel PLC said it is looking to raise Rs.3.3 billion from the shareholders. 
Accordingly, the number of ordinary shares issued will be 272,129,431, at a consideration of Rs.12.15 each.

The ordinary shares will be issued in proportion of one ordinary share for every one existing ordinary share held by the shareholders in the Register of Shareholders, as at the ending of trading on the 
Date of Entitlement.
The company has a current stated capital of Rs.2,759,513,620.
The purpose of the rights issue is to enable the company to settle/reduce the existing borrowing, Odel PLC Chairman/MD Ashok Pathirage said.

The rights issue is subject to the CSE approving in principal, the issue and listing of the ordinary shares and obtaining shareholder approval by way of an Ordinary Resolution at a General Meeting.
Odel, in its latest annual report 2022/2023, noted that while the company grappled with an array of challenges stemming from substantial monetary and policy shifts against an unstable economic backdrop, it achieved an exceptional level of financial performance in areas that were within its control and at EBIT level.
Odel PLC attained its highest sales figure in the past three years of Rs.8.25 billion, even taking into account the Value Added Tax increase.
However, the overall financial performance was noticeably impacted by a significant increase in finance costs, given the hyper-inflated interest rates that prevailed during the year. 
The group ended the year with a loss after tax of Rs.2.21 billion.