Richard Pieris rights issue to raise Rs. 1b

Hiran H. Senewiratne

Richard Pieris Limited will make a share rights issue in the Colombo Stock Exchange (CSE) to raise Rs. 1 billion to settle part of their short-term debts. The company will issue rights at 2:9 basis at Rs. 35 in the CSE for this purpose, its sources said.

Richard Pieris Company has Rs. 3 billion long-term borrowing/debt and Rs. 1.8 billion as short-term borrowing/debt. From this issue, the company will be able to settle part of its short-term debt to reduce the current debt ratio in the company.

According to company sources, they would be able raise Rs. 994 million out of the rights issue which will not touch the Rs. 1 billion mark.

With these developments, the Bourse reacted positively yesterday with the major crossing of John Keells Holdings at the floor.

The All Share Price Index went up by 2.3 points and the Milanka Price Index up by 4.2 points. The number of shares traded in volumes during the day was 86.49 million enabling and the equity turnover reached Rs. 3.06 billion at the end of the day.

The stocks that were traded in volumes were Dialog (64.19 million), Seylan Merchant (Non Voting) (6.34 million), Tess Agro (5.6 million) and JKH (4.64 million).

Companies that were heavily traded in the floor turnover wise was Dialog Rs. 1.7 billion, Ceylon Tea Services Rs. 696 million, JKH Rs. 5,080 million and Commercial Bank Rs. 125 million.

During yesterday's trading few crossings took-place, i.e., two crossings from JKH. First crossing of JKH traded 3.8 million shares at Rs. 124.50 per share while the other one was 64.08 million shares at Rs. 26.50, its sources said.

Other crossings were Ceylon Tea Services Limited 2.14 million shares traded at Rs. 325, Dialog's 64.08 million shares were traded at 26.50 a share.