People Merchant Finance PLC (PMF) announced its second rights issue within a span of less than a year to meet the core capital requirements of Rs. 2.5 billion due in December 2021, as stipulated by the Monetary Board of the Central Bank of Sri Lanka (CBSL).
PMF rights issue is worth Rs. 509,895,750 and from this issue of 78,445,500 shares at Rs. 6.50 per share open to all ordinary shareholders. The rights issue has been approved by the regulatory authority and is currently awaiting approval from the Colombo Stock Exchange (CSE).
Funds from this rights issue will be utilised to mobilise and execute its 5-year transformational strategic plan. Specifically, funds will be diverted towards technological advancements, strengthening the product portfolio, expanding geographical presence, further strengthening its core management team, and enhancing overall customer experience.
Chandula Abeywickrema, Chairman of PMF said, “PMF is positioning itself to make the most of operating in this pandemic inundated market, but we are also slowly and steadily repositing ourselves to capitalise on emerging opportunities, especially those which will arise in the post pandemic era” he states.
Accordingly, the Company sought changes to internal processes and operations, enhanced its market presence by enriching customer services and offering customers financial products to meet their requirements when they need it, and focused on meeting regulatory compliances. These efforts resulted in the Company earning a profit before income tax and tax on financial services of Rs. 100 million for the financial year ended 2020/21, after a span of eight years.
The successful conclusion of PMF’s right issue in March 2021 proved this fact, and is also credited to the realisation of the Company’s turnaround journey.
“For the first time in many years, our employees received bonuses. We also gave salary increments while facing many challenges; and promoted valued staff members in recognition of their services to the Company”, said Nalin Wijekoon, PMF’s Chief Executive Officer.
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