Softlogic Finance PLC, a subsidiary of Softlogic Capital PLC, is all set to launch a Rights Issue to raise over Rs. 2.2 billion in a bid to infuse fresh capital for business expansion with a focus on the company’s future growth. The rights issue will see five (5) new ordinary shares issued for every six (6) existing ordinary shares held by shareholders for Rs. 10/- per new share.
The infusion will strengthen the Company’s Tier 1 Capital, based on its forecasted Business Expansion Programme during the Financial Year 2021/2022.
Further, it will comply with the Capital Adequacy Requirements up to 1st July 2022 as stipulated by the Finance Business Act Directions No. 03 of 2018, which is read together with the Press Release issued by the Department of Supervision of the Non-Bank Financial Institution of the Central Bank of Sri Lanka dated 12th April 2020.
The company will use the funding to boost the growth of its secured lending book, with special emphasis on finance leasing and pawning. Following through on the management restructuring process the business went through in the last financial year, the company is ready to ramp up its growth and multifaceted business expansion with the main business verticals forecasted to achieve near triple-digit year on year growth during the financial year 2021/2022.
Commenting on the Rights Issue Softlogic Finance CEO Priyantha Wijesekera stated, “Even as we find our way out of a prolonged pandemic situation, Softlogic Finance is bullish on expanding the business, emphasising on secured lending products such as finance leasing and pawning in times of uncertainty.”
The new ordinary shares will be listed on the Diri Savi Board of the Colombo Stock Exchange.
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