People’s Merchant Finance PLC continues achieving strategic milestones in its transformational journey. The latest being the oversubscribed rights issue aimed at strengthening its core capital requirements to fully meet CBSL compliance requirements by March 31, 2021.
Post the rights issue, 78.55% shares of the Company are held by Sterling Capital Investments (Private) Limited (SCIPL), its major investor. The balance shares are held by People’s Bank (10.36%), People’s Leasing and Finance PLC (7.65%), and the public (3.44%).
The Company recording Rs. 22.3 million as profit after taxation in the second quarter of the FY2020/21 after an extended 10-year period of losses followed by a second profitable and successful quarter ended December 31,2020 which recorded Rs. 31 million as profits after taxation showcases the Company’s resilience and true grit.
Following the chartered course of its planned transformation journey, PMF proceeded with, and successfully concluded, a rights issue in March 2021 as a measure to meet the minimum core capital requirements of Rs. 2 billion as stipulated by the Monetary Board of the Central Bank of Sri Lanka (CBSL) under the Finance Business Act Direction No. 02 of 2017 issued on 23rd February 2017. The rights issue which was delayed due to the outbreak of the COVID-19 pandemic was announced earlier this year and raised Rs. 811.87 million in funds with the issue of 115 million shares for Rs. 7.00 per share at its conclusion. It also successfully improved the Company’s governance and compliance frameworks thereby safeguarding the interests of all the stakeholders.
The rights issue, which was mainly pursued to satisfy the CBSL core capital requirements, also improved the Company’s internal funds position. The new funds will also create value for PMF’s stakeholders in the long term while enabling the Company to offer new in-demand products to the market and support the Sri Lankan Government’s Economic Development Agenda.
“PMF’s rights issue was oversubscribed”, says Chandula Abeywickrema, the Company’s Chairman. “For us, this was a fundamental insight to how stakeholders perceive our Company and the changes we have made to date”, he continued.
According to Abeywickrema, the rights issue oversubscription also points towards the improving financial stability and reliability of PMF as well as the Company’s ability to move steadily forward with its five-year transformational strategic plan.
The success of the Company’s recent rights issue is expected to build the future confidence of existing and prospective stakeholders.
As Nalin Wijekoon, PMF’s Chief Executive Officer reiterated, “we are on a steady and stable path of growth and prosperity. The Company made profits for the first time in a year where many organisations were negatively impacted. It gives me great pleasure to lead a team of dedicated professionals who have given their all even as they faced personal challenges.” The future of PMF remains unchartered with myriad emerging opportunities and possibilities for evolution within a changing business landscape.
PMF also aims to increase the financial inclusion of rural communities, women, and youth by supporting and empowering them to achieve financial independence and prosper to become economically viable individuals.
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