People's Merchant to raise Rs 450m in Rights Issue

People's Merchant PLC will raise Rs 450 million by way of a rights issue of 30 million ordinary shares in the proportion of four ordinary shares for every five ordinary shares held in the company at the consideration of Rs 15 a share.

The funds to be raised for the proposed rights issue foresight will be to comply with the liquidity reserve required as laid down by direction No. 2 of 2011 issued by the Central Bank of Sri Lanka dated March 30, 2011 and to mobilize long term funds of the company in order to retire short term debts and to support the proposed increase in lending portfolio of the company.

The current stated capital of the company is Rs 644, 399, 462.