People’s Merchant Finance rights issue oversubscribed | Sunday Observer

People’s Merchant Finance rights issue oversubscribed

25 April, 2021

People’s Merchant Finance PLC (PMF) continues achieving strategic milestones in its transformational journey. The latest being the oversubscribed rights issue aimed at strengthening its core capital requirements to fullymeet CBSL compliance requirementsby March 31, 2021.

Post the rights issue, 78.55% shares of the Company are held by Sterling Capital Investments (Private) Limited (SCIPL), its major investor. The balance shares areheld by People’s Bank (10.36%), People’s Leasing and Finance PLC (7.65%), and the public (3.44%). The Company recording Rs. 22.3 million as profit after taxation in the second quarter of the FY2020/21 after an extended 10-year period of losses followed by a second profitable and successful quarter ended December 31, 2020 which recorded Rs. 31 million as profits after taxation showcases the Company’s resilience and true grit.

The rights issue raised Rs. 811.87 million with the issue of 115 million shares for Rs. 7.00 per share at its conclusion.

The rights issue, which was mainly pursued to satisfy the CBSL core capital requirements, also improved the Company’s internal funds position.This influx of funds will be utilised to follow through with its ambitious business expansion and product diversification.

According to Chairman Chandula Abeywickrema the rights issue oversubscription points towards the improving financial stability and reliability of PMF and the Company’s ability to move steadily forward with its five-year transformational strategic plan.

PMF’s CEO Nalin Wijekoon said, “We are on a steady and stable path of growth and prosperity. The company made profits for the first time in a year where many organisations were negatively impacted.”