Trade Finance and Investment Ltd (TIFL) will raise Rs.120 million through an Initial Public Offering on the Colombo Stock Exchange. The finance company will offer 6 million shares priced at Rs.20 in an IPO billed to open on the 28 September.
The funds raised will be used for expanding the loan portfolio and branch expansion, L.A.J.F Morais the Managing Director of the company, told the Daily FT.
The company’s total assets are Rs.720 million and its loan portfolio tied up in leasing, hire-purchase and other areas is Rs.409 million. The listing is in keeping with Central Bank regulations requiring finance companies to list. The company recorded Profit Before Tax of Rs.38.8 million in the 4 months ending June compared to Rs.28.8 million in the same period last year. Profit Before Tax in the FY 20010/11 was Rs.93.8 million up from Rs.49 million in the FY 2009/10. Registered Finance companies are regulated by the Finance Companies Act through the Non- bank Supervision Department of the Central Bank. There are 38 finance companies registered with the Central Bank at present. (DG)