Capital Alliance Finance PLC, a finance company with an asset base over Rs.1 billion is planning to raise Rs.116 million through a rights issue.
To this end, the company is to issue 7, 753, 207 shares at the proportion of one new share for every five existing shares at Rs.15 each.
The firm’s current stated capital stands at Rs.193.5 million, represented by 38, 766, 036 shares.
The rights issue proceeds are expected to be used to increase the working capital and comply with the minimum core capital requirements of the Central Bank.
The rights issue is subject to the Colombo Stock Exchange approval in principle and obtaining shareholder approval at a General Meeting.
The company has already received the nod from the finance sector regular, the Central Bank of Sri Lanka for the proposed rights issue.