Vallibel Finance PLC yesterday revealed its plans to raise little over Rs.1 billion through a cash call to its shareholders.
The finance company said its directors passed a resolution last week to issue 17.3 million ordinary shares in the proportion of five new shares for every 12 ordinary shares held, at the price of Rs.60 per share.
The Vallibel Finance share is currently trading on the Colombo bourse around Rs.70-Rs.70.50.
As at December 31, 2017, Vallibel Finance’s net asset value per share stood at Rs.75.03.
The current stated capital is Rs.287.1 million represented by 41.5 million ordinary shares.
“The proceeds will be utilized to strengthen the Tier I capital base of the company in keeping with the company’s expansion and maintaining the capital adequacy requirements as stipulated by the Central Bank of Sri Lanka,” Vallibel Finance said in a stock exchange filing.
Business tycoon Dhammika Perera’s Vallibel Investments (Pvt.) Limited owns 73 percent of Vallibel Finance.
The company said it has obtained the approval of the Central Bank for the proposed rights issue but said the issue is subject to the principle approval of the Colombo Stock Exchange and the shareholders at a General Meeting.