810,000 new shares to the market :
Alliance goes for 1:2 Bonus Issue
Ravi Ladduwahetty
Alliance Finance Co. PLC will shortly go in for a bonus issue where
one new share will be offered for every two shares, making 810,000 new
shares be offered to the market on its already existing 1,620,000 issued
share capital. The company will be giving a new share for every two
shares held for the 1,620,000 shares which is the issued share capital
in capitalization of reserves for which we have already informed the
Colombo Stock Exchange after Board approval at its meeting Wednesday.
We will proceed with it, subject to the approval of the Stock
Exchange, Central Bank of Sri Lanka and the Monetary Board, Alliance
Finance Deputy Chairman and Managing Director Romani De Silva told Daily
News Business last night.
This will mean that 810,000 shares will be added to the market to the
already existing capital, while simultaneously increasing the
shareholder value which will rise with the issue, he said.
The shares which were trading at Rs 1,000 prior to the capitalization
of reserves but the equivalent value of the share would proportionately
decline by a third with the new shares in circulation.
Alliance Finance already enjoys a BBB plus investment grade rating
assigned by Ram Ratings Lanka Ltd and also is featured in the Top 100
most valuable brands of Sri Lanka and among the Top 100 respected brands
according to a survey carried out by AC Neilsen.
The company has performed tremendously well with a 172% increase pre
tax Profit to Rs 184.7 million for 2011 over the 67.8 million a year ago
while there had been a 198% growth in the profit before tax to Rs 234.7
million from the Rs. 78.6 million. The turnover between the two years
had grown 40% to Rs 4.9 billion for 2011 from 3.4 billion a year ago.
Alliance Finance also emphasizes on the development of the triple
bottom line businesses that impact the lower income segments of the
economy favourably on our core values and our company which is currently
serving four live generations of customers has been built on core values
of trust and covered by innovations.
There is a huge thrust in our business growth and the performance
would be unprecedented for 2011 and 2012, De Silva predicted. “What is
strident is that our growth trajectory is well outside the western
province and is expected to be from the North Central, Northern and
Eastern Provinces,” he said. The finance company has eight branches and
14 collection centres well scattered across the country and not in
specific areas. |