Softlogic Finance PLC announced on Monday, November 30, 2020 that it raised Rs 1.9 billion through its recent rights issue, offering 165,390,848 million ordinary voting shares in the ratio of 8 new shares for every 5 shares held, at an issue price of Rs 11.50 a share. The Rights Issue boosted the total equity position of the company to Rs 4.5 Bn., the company stated.
This equity raising initiative reaffirms Softlogic Finance’s commitment towards a fresh phase of organizational growth and development. The company has previously indicated that the capital raised would allow it to facilitate the rollout of its new business strategy and strive for the realization of the high growth trajectory mapped out by the new management team that has been in place since May of this year. Further, this capital infusion would also contribute towards meeting the applicable regulatory requirements of the Central Bank of Sri Lanka, including the capital adequacy requirements of the company.
The Softlogic Group has long viewed Financial Services as an industry with substantial opportunities for growth. This underscores the group’s determination to ensure that Softlogic Finance maintains its signature financial strength and remains confident that the company is well-placed in today’s environment to capitalize on the evolving market opportunities and achieve long term sustainable growth. This capital infusion comes at an opportune moment with demand for credit by the private sector expected to rise on the back of the reduction of interest rates to multi-year lows.
Softlogic Finance PLC is mainly held by Softlogic Capital PLC, which is the Financial Services Holding Company of the Softlogic Group that has established an impressive presence in the market with a portfolio comprising of Softlogic Life Insurance PLC, Softlogic Finance PLC, Softlogic Stockbrokers (Pvt.) Ltd and Softlogic Asset Management (Pvt.) Ltd.
Softlogic Holdings also has interests in healthcare, retail, ICT, leisure, automobiles and restaurants. Softlogic Finance PLC is a registered finance company with the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011, as well as a Specialized Leasing Company licensed by the Central Bank of Sri Lanka under the Finance Leasing Act No. 56 of 2000.