Softlogic Finance to Raise over Rs. 2.2 Bn in Rights Issue Sights set on multifaceted business expansion
Softlogic Finance PLC, a subsidiary of Softlogic Capital PLC, is all set to launch a Rights Issue to raise over Rs. 2.2 billion in a bid to infuse fresh capital for business expansion with a focus on the company’s future growth. The rights issue will see Five (5) new Ordinary Shares issued for every Six (6) existing Ordinary Shares held by shareholders for Rs. 10/- per new share.
The infusion will strengthen the Company’s Tier 1 Capital, based on its forecasted Business Expansion Programme to be in compliance with the Capital Adequacy Requirements up to 1st July 2022 as stipulated by the Finance Business Act Directions No. 03 of 2018, which is read together with the Press Release issued by the Department of Supervision of the Non-Bank Financial Institution of the Central Bank of Sri Lanka dated 12th April 2020.
The company will use the funding to boost growth of its secured lending book, with special emphasis on finance leasing and pawning. Following through on the management restructuring process the business went through in the last financial year, the company is ready to ramp up its growth and multifaceted business expansion with the main business verticals forecasted to achieve substantial year on year growth driven by a clearly differentiated tech driven strategy.
Commenting on the Rights Issue Priyantha Wijesekera, Chief Executive Officer, Softlogic Finance PLC stated, “Even as we find our way out of a prolonged pandemic situation, Softlogic Finance is bullish on expanding the business, emphasizing on secured lending products such as finance leasing and pawning in times of uncertainty. The Softlogic Group was one of the top ten corporate entities to navigate the pandemic successfully, and we follow in its wake to ensure the best returns for our stakeholders as we make an indelible mark in the industry, continuing to deliver a distinctive and easily accessible value proposition to our customers with a future ready strategy.”
The Issued Share Capital of the Company is to be increased by way of this rights issue of two hundred twenty-three million nine hundred sixty-six thousand seven hundred and seventy-four (223,966,774) ordinary shares at Rs. 10/- per share for a total consideration of Rupees two billion two hundred and thirty-nine million six hundred and sixty-seven thousand seven hundred and forty (Rs. 2,239,667,740/-). The new Ordinary Shares, will be listed on the Diri Savi Board of the Colombo Stock Exchange (CSE).
Softlogic Holdings PLC is known to be one of Sri Lanka’s most dynamic and progressive conglomerates, with industry leadership in key business verticals, being present across; ICT, Healthcare, Retail, Financial Services, Automobiles and Leisure. Softlogic Finance is a registered finance company under the Finance Business Act No. 42 of 2011.
