Capital Reach diverts 15.45% stake

Hiran H.Senewiratne

Capital Reach Holdings has divested 15.45 per cent of its stake in its subsidiary company Capital Reach Leasing Limited (CRLL). The company will go for initial trading from today following the listing of the company in the Colombo Stock Exchange (CSE).

“Since we disposed of a certain quantum of shares to the public, our trading of stocks will start from today to raise capital for the company, perhaps go to the debt market in the future,” its Senior Manager Manoj Kumar told Daily News Business.

The company went for an Initial Public Offering (IPO) on December 8 and offered 3.1 million shares to the public to raise Rs. 55.8 million at Rs. 18 per share, market sources said. The company mainly provides Finance Leasing and Hire purchase facilities and accepts fixed deposits and savings. In 2008 CRLL set up a unit for development and sale of property.

At present, the company enjoys a market share of less than three per cent and through the raising of capital from the stock market the company aims at stabilising its position. The main objective of this divestiture was to enhance the marketability of shares by allowing greater access to the Sri Lankan capital market while strengthening the liquidity position of the entity, Kumar said.

The company is also anticipating to broad-base its shareholdings by enhancing the marketability of shares from the medium to long-term perspective despite all overwhelming odds in the external market place, he said.

The new equity investment which flowed in to the company in 2005 heralded a period of growth and gave the company the ability to focus on areas of strength allowing it to bypass threats in the market.

CRLL is manned by a team of professional staff with vast experience in Marketing and Finance and is geared to provide the highest quality service to its clientele.

CRLL is a Registered Finance Company incorporated in 1999 and licensed by the Central Bank of Sri Lanka under the Finance Companies Act of 78 of 1988.