Softlogic Finance rights issue oversubscribed

The recent Softlogic Finance PLC Rights Issue was over-subscribed by over 150% with the new equity infusion of Rs 401 million, boosting the Total Equity position of the Company to Rs 1.9 billion.

The Rights Issue, in which 10 Ordinary Shares were issued at Rs 30 per share for every 28 Ordinary Shares held by shareholders as at February 26, attracted applications for over 20.1 million shares - with over-subscriptions exceeding 6.7 million shares.

Applications for 13,376,411 shares at Rs 30 each were accepted by the company and applications closed on March 16.

In addition to expanding the capital base of Softlogic Finance PLC, the equity infusion is needed to facilitate the high growth trajectory of the company, that has seen its total assets increase to Rs 20 billion, an increase of over 10 times within four-and-a-half years, compared to an asset positionof Rs 1.8 billion when the Softlogic Group acquired the company.

The issue is expected to enhance the capital structure and facilitate the aggressive business plans of the company.

The capital infusion comes at an opportune time with demand for credit by the private sector showing notable increases on the back of reduction of interest rates to multi-year lows, a company official said.

"Softlogic Finance PLC is pleased at the demonstration of confidence in the company and endorsement of its strategy, by shareholders and new investors, especially at a time of bearish sentiment in the stock market," Softlogic Finance, Chairman, Ashok Pathirage said.

"The capital infusion will add significant further impetus to Softlogic Finance's journey to achieving its vision of becoming the preferred non-banking financial institution in Sri Lanka," he said.