Senkadagala Finance to tap shareholder funds

Senkadagala Finance yesterday announced plans for a rights issue to raise up to Rs.474.5 million to help the company to maintain its capital adequacy requirements ordered by the Central Bank. 

Accordingly, the finance company controlled by the Balasuriya family will issue 8.6 million ordinary voting shares in the proportion of one new share for every nine existing shares, at a price of Rs.55 a share. 

The current stated capital of the company is Rs.1.95 billion.

The Senkadagala Finance share was last traded at Rs.90.53.

The company said the rights issue is subject to the Colombo Stock Exchange approving in principle the issue and listing of shares and obtaining the shareholder approval at an Extraordinary General Meeting.