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.
source - www.dailynews.lk
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