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Wednesday, July 6, 2011

Rudra continues to exit from CSF

By Jithendra Antonio

A key investor Jayaprakash Rudra who pumped in money via a private placement to former crisis-hit Ceylinco subsidiary Nation Lanka Finance, recently sold part of his Nation Lanka Finance (CSF) stake for a consideration of approximately Rs.2.47 million.

In a filing to the stock exchange, Nation Lanka Finance (CSF) said that Jayaprakash Rudra sold 20,100 shares each at Rs.24.90, 20,000 shares each at Rs.24.70 and a further 59,900 shares each valued at Rs.25 per share on July 1.

The announcement came after Rudra shed nearly 580,800 shares of CSF at a price ranging from Rs.29.80 to Rs.30.20 on May 30.

On May 30, Rudra’s initial sale transaction was done when Nation Lanka Finance PLC’s (CSF) shares started climbing extraordinarily since the conclusion of a rights issue. The share went up from Rs.14 in early May to Rs.31 end of May. It thereafter dipped to Rs.27 to Rs.25 levels in June this year.

Rudra’s first sale of shares took place just before the release of CSF financials for the quarter ended in 31 March 2011. CSF financials were hardly positive during the quarter as per data. When inquired about Rudra’s sale of shares from CSE, a Colombo Stock Exchange official said that there’s only a rule that restricts a director selling company shares within two market days, since the release date of financials.

Jayaprakash Rudra, a member of the new consortium of investors led by Asanga Seneviratne; initially invested in 16 million shares of CSF for a total consideration of Rs.80 million, at a fairly undervalued price of Rs.5 per share in the private placement that took place in March 2011.

“There’s no rule pertaining to a director selling shares before the release of financial results. However, if a director had sold with price sensitive information, SEC should definitely investigate.’ CSE source told.

However, back in March 2011, at the time of inviting new consortium of investors’ to infuse capital to former Ceylinco owned Nation Lanka Finance PLC (CSF), lead investor of the new consortium Asanga Seneviratne stressed, the new consortium will be committed for the company’s long-term growth, though certain news reports had predicted that new investors may exit in the short-term after buying company shares at a fairly undervalued price of Rs.5 per share.

source - www.dailymirror.lk