Fintrex Finance Ltd. recently completed a rights issue of Rs. 600 million from existing investors to fund future growth. Shareholders invested through Bluestone 1, the sole owner of Fintrex Finance, in a transaction that was managed by Bluestone Capital (Pvt.) Ltd .
Commenting on the foreign direct investment (FDI) from Hamblin Watsa Investment Counsel (HWIC) and the performance of the company, Chairman Ajit Gunewardene said: “As an institution that recently celebrated 10 years, my team and I are extremely satisfied with the progress of Fintrex. This FDI during a volatile economic climate is a clear demonstration of investor confidence in our five-year strategic plan to further expand, grow and digitalise our processes, the latter especially being in line with our technology-driven platform for business.”
The capital raise was led by HWIC (Asia), a 100% owned entity of Fairfax Holdings (Canada) which owns a 70% stake, MAS Investments, and Rosewood Capital.
Fintrex Finance concluded its nine-month period ended December 2021 with a post-tax profit of Rs. 286.7 million, representing a growth of 407% compared to the previous year.
The company’s financial parameters bear witness to its strength as a stable financial institution. With the right issue, core capital base reached Rs. 3.2 billion, with the capital adequacy ratio (CAR) strengthened to 23.79%. With a recorded return on equity (ROE) of 14.95% and a provision cover of 74%, the company has proved its ability to be a strong contender in the financial services sector, especially during challenging times.
Fintrex Finance completes rights issue with FDI
16 Mar 2022
Fintrex Finance completes rights issue with FDI
16 Mar 2022