Janashakthi Insurance in Rs.3.3bn cash call

21 August 2015 06:23 am

Janashakthi Insurance PLC announced that it would be opting to raise Rs.3.36 billion through a rights issue to finance its insurance business expansion. 
Accordingly, one new share will be issued for every two shares currently held, for a total of 181.50 million shares at a rate of Rs.18.50 per share. 
The share price at market close yesterday was Rs.20.20, falling by Rs.2.80 through the day.
The current stated capital of the company is Rs.1.5 billion.
The issuance is subject to Colombo Stock Exchange and shareholder approval.
For the 3 months ended June 30, Janashakthi Insurance posted a net profit of Rs.94.17 million compared to Rs.191.24 million year-on-year, with earnings per share falling to Rs.0.26 from Rs.0.53 yoy.
The fall in profits was mainly due to an increase in benefits and claims payouts. 
Gross written premium was Rs.2.37 billion, up from Rs.2.03 billion yoy.
The group has an asset base of Rs.22.18 billion, with a net asset per share value of Rs.12.15.