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Softlogic Finance to raise over Rs. 2.2 b in rights issue

14 May 2021

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 new ordinary shares issued for every six 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 FY 2021/2022. Furthermore, it will be in compliance with the capital adequacy requirements up to 1 July 2022, as stipulated in the Finance Business Act Directions No. 3 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 12 April 2020. The company will use the funding to boost 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 (YoY) growth during the FY 2021/2022. Commenting on the rights issue, Softlogic Finance Chief Executive Officer (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 Softlogic Group was one of the top 10 corporate entities to navigate the pandemic successfully, and we follow in its wake to ensure the best returns for our stakeholders as we make an indelible mark in the industry, continuing to deliver a distinctive and easily accessible value proposition to our customers with a future-ready strategy.” The issued share capital of the company is to be increased by way of this rights issue of 223,966,774 (two hundred twenty-three million nine hundred sixty-six thousand seven hundred and seventy-four) ordinary shares, at Rs. 10 per share, for a total consideration of Rs. 2,239,667,740 (two billion two hundred and thirty-nine million six hundred and sixty-seven thousand seven hundred and forty). The new ordinary shares will be listed on the Diri Savi Board of the Colombo Stock Exchange (CSE).


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