Senkadagala Finance to raise Rs.362mn via rights issue

Balasuriya family-controlled Senkadagala Finance PLC has announced a rights issue to raise Rs.362.3 million to beef up its capital position in order to comply with the regulatory capital requirements. 

Accordingly, the finance company plans to issue 5.1 million shares in the proportion of one new ordinary share for every 14 existing shares.

The current stated capital of the company is Rs.1.58 billion, represented by 72.4 million of shares. 

“… proceeds of the issue are to be utilised to maintain the capital adequacy requirements in terms of the Finance Companies (risk weighted capital adequacy ratio) Direction No.02 of 2006 issued by the CBSL,” a stock market filing by the company said.

The Senkadagala Finance share was last traded at Rs.92 per share and the net assets per share as at September 30, 2020 was Rs.74.93.

The rights issue is subject to the Colombo Stock Exchange and shareholder approval.