Senkadagala Finance announces Rs. 1 bn rights issue to fund expansion and support capital buffers

Senkadagala Finance PLC has announced a rights issue to raise approximately Rs. 1.03 billion to support its projected business growth and expand its loan portfolio. 

The capital infusion is also intended to strengthen the company’s capital base and maintain prudent levels of capital adequacy as it pursues medium-term strategic objectives.

The Board of Directors resolved on October 30, 2025, to issue 4,313,992 new Ordinary Voting Shares. The shares will be issued in the proportion of one new share for every twenty existing shares held by shareholders. The issue is priced at Rs. 240.00 per share.

In its filing with the Colombo Stock Exchange, the company noted that the proceeds will be utilised to expand the loan book in accordance with projected growth plans. The move is also aimed at reinforcing stakeholder confidence by maintaining capital buffers well above regulatory thresholds.

As per the interim financial statements for the six months ended September 30, 2025, the company already remains well capitalised. 

The Total Capital Adequacy Ratio stood at 22.59 percent, significantly above the minimum regulatory requirement of 12.5 percent. The Core Capital Ratio was reported at 19.67 percent against a minimum requirement of 8.5 percent. The rights issue indicates a proactive approach to capital management, ensuring these ratios remain robust as the asset base expands.

The announcement follows a period of strong financial performance for the diversified financial services provider. For the six months ended September 30, 2025, the Group reported a profit after tax of Rs. 1.1 billion, a 43 percent increase compared to the previous year. The Group’s total asset base stood at Rs. 48.1 billion as of September 30, 2025.

The proposed rights issue has received approval from the Central Bank of Sri Lanka. It is now subject to approval in principle from the Colombo Stock Exchange and the shareholders at an upcoming Extraordinary General Meeting.

At the Colombo Stock Exchange yesterday, Senkadagala Finance PLC’s share price closed at Rs. 1,194.75, down Rs. 105.25 or 8.10 percent.