Two Softlogic group subsidiaries in the financial services sector yesterday revealed plans to collectively raise up to Rs.2.9 billion via rights issues, subject to regulatory and shareholder approval.

Softlogic Finance PLC said it was issuing 165.3 million new shares priced at Rs.11.50 each in the proportion of eight new shares for every five shares held.

The company said the proceeds of the rights issue, which amount to Rs.1.9 billion, would be utilised to improve its Tier 1 core capital requirements.

Softlogic Finance said its immediate parent, Softlogic Capital Finance PLC, has agreed to fully undertake and subscribe and pay for unsubscribed rights shares of the company. Softlogic Capital owns little over 73 percent of the issued shares of Softlogic Finance.

Meanwhile, Softlogic Capital said it was issuing rights to the tune of Rs.1 billion to be invested in its subsidiary Softlogic Finance. Accordingly, Softlogic Capital plans to issue 289 million new shares priced at Rs.3.50 each in the proportion of 21 new shares for every 50 shares held.

Softlogic Holdings PLC owns nearly 75 percent of the issued shares of Softlogic Capital.

Softlogic Capital share closed yesterday at Rs.4.70, down 10 cents or 2.08 percent while Softlogic Finance share closed at Rs.13, down 20 cents or 1.52 percent.