The Central Investment & Finance Limited is leading Finance Company in providing more modern Finance service in Srilanka.
The Central Investment & Finance Limited is Offer for Subscription of 40 Million Ordinary Voting Share at the Price of Rs.10.00 each; the IPO is 47.95% of total Shares of Central Investment & Finance Limited.
Central Investment & Finance Limited Initial Public Offerings Objectives
The IPO is to increase the capital base of the of the company in order to expand the core businesses,
| Micro Finance | Rs.270 Million |
| Hire Purchase and Leasing | Rs.100 Million |
| Real Estate Portfolio | Rs.30 Million |
The Company investing Rs.30 Million in their Housing project in Homagama, Park land Residencies to build 95 Residential Units.
Central Investment & Finance Limited IPO Opening and Closing Date
The Central Investment & Finance Limited IPO will be open to subscribe on 21st July 2011 and the closing date will be on 9th August 2011 or on the date the issue is oversubscribed whichever is earlier.
Minimum Subscription
The Central Investment & Finance Limited IPO Minimum Subscription will be 100 Shares value of Rs.1, 000.00
Basis of Allotments
The Central Investment & Finance Limited will be allot the IPO shares as following Approach,
| Category | Percentage of IPO |
| Company Employee | 10% |
| Existing Depositors | 30% |
| Retail Individual Investors | 40% |
| Unit Trust Investors | 10% |
| Non Retail Investors | 10% |
The Retail Investor Category is where the investors who subscribed for maximum of 10,000 shares, and the Existing Depositors are where a Depositor who gas fixed Deposit of Saving Account for over 6 Month as at 30th April 2011.
Central Investment & Finance Limited IPO and No of Shares to be listing in CSE
The Central Investment & Finance Limited has applied to listing its 83,426,733 Ordinary Voting shares on Main Board of Colombo Stock Exchange.
The Existing 19,739,424 ordinary Shares are subdivided into 11 Ordinary Shares for Every 5 Ordinary Shares Held.
Therefore the shares held by existing shareholders as 43,426,733 shares.
| Existing shares after Subdivision | 43,426,733 |
| Initial Public Offerings | 40,000,000 |
| Total No of Shares | 83,426,733 |
As per the Prospectus the current Stated Capital before IPO is Rs.232, 033,225.00
Therefore real value of the share is Rs.5.34 (Rs.232, 033,225/46,426,733)
My View
As a financial service Organization the Central Investment & Finance Limited is having a better future the net asset value of Rs.5.34 is good indicator with the Profit and the Total income generated by the Central Investment & Finance Limited.
Therefore the investment may good for long term and medium term investors, but is may not suggested to a short term investors, cause the IPO objectives are not short term focus.
Central Investment & Finance Limited prospectus and Application
| Prospectus: | http://www.cse.lk/270808/pdf/4_7_2011_CIFL_Pros.pdf |
| Application Form: | http://www.cse.lk/270808/pdf/4_7_2011_CIFL_APP.pdf |
| Article of Association: | http://www.cse.lk/270808/pdf/4_7_2011_CIFL_ART.pdf |
For more information:
http://synergyy.com/2011/06/23/central-investments-and-finance-limited-%e2%80%93-ipo/
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