The People Merchant PLC announced to Colombo Stock Exchange that the Board of Directors of the Company has decided to raise a sum of Rs. 450 Million by the way of Rights Issue.
The People’s Merchant PLC expected to Issue 30 Million Ordinary Shares as Rights Issue at the price of Rs.15 per share as the proposition of 4 Ordinary shares for every 5 ordinary shares held in.
The Purpose of Rights Issue
The People’s Merchant PLC proposed the Rights Issue to comply with the liquidity reserve requirement of the central bank of Srilanka and to Mobilize long term funds of the company to settle short term debts and support to proposed increase in company’s leading portfolio.
The Rights issue is subject to the CSE approvals and Shareholders Approvals on AGM.