Mar 01, 2011 (LBO) - Ceylon Guardian Capital Partners, an illiquid listed firm that is symptomatic of odd trends in Sri Lanka's exuberant stock market ended a spectacular trading day, Tuesday, brokers said.
The firm, a virtual shell company closely owned by Sri Lanka's Carson's Cumberbatch group, is having a rights issue to invest in private equity.
The stock opened at 3,000 rupees Tuesday, pushed up by punters from 2,913.30 a day earlier but closed at 2,177.80 down 735.50 rupees.
The moves came as the firm reminded shareholders in an interim statement that its book value was about 20 rupees per share. Even after a 75 for 2 rights issue at 20 rupees per share its net assets would only be 20.05 rupees.
The firm said it had revenues of just 271,000 rupees and lost 76,000 rupees for the December quarter, representing loss per share of 11 cents. For the nine months to December 2010 however it had earned 306,000 rupees or 46 cents per share.
However, as a shell company the firm was bid up to nearly 100 rupees last year. Shell companies have a value as vehicles for 'backdoor' listing, at least to the cost of a new listing.
Ceylon Guardian Capital Partners would raise 503.2 rupees to invest 249.6 million rupees in the stock of Expolanka Holdings, privately held group. Even after Tuesday's fall the firm was valued at 1.4 billion rupees.
Meanwhile also on Tuesday the firm's rights had a flying start at 2,500 rupees per unit, then started to lose height.
Meanwhile also on Tuesday the firm's rights had a flying start at 2,500 rupees per unit, then started to lose height.
In afternoon trade, a 21.6 million of parcel of rights, went at 10.30 rupees. The firm said it was a transfer to another group company.
The rights which slipped as low as 300 rupees, smartly moved up again to close at 500 rupees.
source - www.lbo.lk
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