Business News: Browns Investments Plc has announced plans to raise a staggering Rs. 19 billion via a Rights Issue. The basis of the Rights Issue will be two new ordinary voting shares for every one held. This involves the issuance of 9.579 billion shares and will be at Rs. 2 per share.
The current stated capital of Browns Investments is Rs. 11.84 billion represented by 4.789 billion ordinary voting shares.
The company said the money raised from the Rights will be used for the settlement of debts.
As at 31 December 2019, Browns Investments Plc had Rs. 9.6 billion in long-term interest bearing borrowings, Rs. 2.6 billion in short-term borrowings and Rs. 25.5 billion in amounts due to related parties.
The net asset per share of Browns Investments is Rs. 8.06 at the group level and Rs. 3.42 at the company level. It last traded at Rs. 2.20. In the quarter ended 31 December 2019, the highest price was Rs. 5.20 and the lowest was Rs. 3.70 before closing at Rs. 5.
Browns Investments has 17,892 public shareholders while its public float is 21.26%.
The major shareholders are Brown and Company Plc (32%), LOLC Investments (10.6%), Oxford Capital Ltd. (7.72%) and Churchill Capital Ltd. (6.86%).
Courtesy to ‘ft.lk’