Friday, September 23, 2011

Shareholders divest LOFC shares

Lanka Orix Finance Company (LOFC) which is a subsidiary company of Lanka Orix Leasing Company PLC yesterday became the top contributor to the day’s turnover, as the market witnessed a single crossing of 52 million shares, each at Rs.12 generating Rs.624 million. Unconfirmed reports suggested that sellers and buyers are both local parties. According to the shareholder list presented with the introductory document of the LOFC that was released last May, there are only three parties that held over 52 million shares besides the largest shareholder LOLC with 90 percent stake.

The three parties who had over 52 million shares were India Focus Cardinal Fun (100 million shares or 3.57%,), Saakya Capital Private Limited (65.6 million shares or  2.34%,) and Infinity Capital Limited (60 million shares or 2.14%). Meanwhile Indian media reports said yesterday that Securities and Exchange Board of India (SEBI) banned India Focus Cardinal Fund, which was the second largest shareholder of LOFC and four other international funds from the Indian stock market for their alleged role in stock manipulation.

LOFC share opened at Rs.11 and closed at Rs.10.20. The total number of LOFC shares traded was 52.1 million. LOFC has 2, 800 million shares in issue, and initially the share came into the market with an indicative price tag of Rs.5.

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