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NDB Bank to raise Rs. 8 billion via rights issue

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By Hiran H.Senewiratne 

NDB Bank announced plans to raise Rs. 8 billion via a rights issue to enhance its capital base and finance business growth, stock market analysts said.

The bank has resolved to issue 106.78 million shares on the basis of 28 new shares for 61 held at Rs. 75 each, CSE sources said

NDB share price closed unchanged yesterday at Rs. 83.40. Its net asset value per share as at June 30 was Rs. 184.25, up from Rs. 178 as at December 31, 2019. The current stated capital is Rs. 8.79 billion represented by 232.63 million shares. 

NDB Bank has 9,922 public shareholders. Among the biggest shareholders of NDB Bank are EPF (10percent ), BOC (8 percent ), Sri Lanka Insurance (11percent ), Dr. Sena Yaddehige (4 percent ), Softlogic Life Insurance (4 percent ), and ETF (4 percent ). The proceeds of the NDB rights issue are to be utilised to further strengthen the equity base of the bank and thereby improve capital adequacy ratios in line with BASEL III guidelines of the Central Bank and to part finance the growth in the loan portfolio of the bank.

However, CSE activities were positive yesterday morning but subsequently became negative with the government announcement on the imposition of a quarantine curfew for the Gampaha district coupled with the disclosure of certain negative provisions in the 20th amendment to the Constitution.

Amid those developments both indices turned negative. The All Share Price Index went down by 249.56 points down and S and P SL20 declined by 95.46 points. The turnover stood at Rs. 3.25 billion with three crossings. Those crossings were reported in Cargills where  778,000 shares crossed to the tune of Rs. 147.8 million; a share price trading at Rs. 190, Keells Hotel 3.1 million shares crossed for Rs. 24.7 million, its shares trading at Rs. 8 and Melstacorp 600,000 shares crossed for Rs. 21 million at a per share value of Rs. 35.

In the retail market top five companies that contributed to the turnover were, Expolanka Rs. 488 million (27.4 million shares traded), JKH Rs. 267.8 million (two million shares traded), Tokyo Cement (Non Voting) Rs. 183 million (3.5 million shares traded), Tokyo Cement (Voting) Rs. 153.2 million (2.5 million shares traded) and HNB (Voting) Rs. 93.4 million (796.000 shares traded). During the day 196.7 million share volumes changed hands in 36983 transactions. 

Corporate earnings of listed companies plunged by 52 percent  year-on-year (YOY) to Rs. 33.5 billion in 2020 March quarter, First Capital Research revealed yesterday. The analysis was based on reported earnings of 266 listed companies. 

It said the plunge was primarily owing to sluggish performance in Diversified Financials (-87 percent  YOY), Capital Goods (-63 percent YOY), Food, Beverage and Tobacco (-72 percent  YOY), Telecommunication (-52 percent  YOY) and Consumer Services (-101 percent  YOY). 

However, an upbeat quarterly performance was witnessed in the following sectors, Banks (+32 percent YOY) followed by Food, Staples and Retailing (+96 percent  YOY) and Materials (+8 percent  YOY). 



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Galadari Colombo awarded ‘SLIM People’s Hotel Brand of the Year 2021’

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The Galadari Colombo was given a thumbs up from the people as the People’s Hotel Brand of the Year for the second time running at the recently concluded SLIM (Sri Lanka Institute of Marketing) People’s Awards 2021.

The uniqueness of the SLIM People’s Awards is the fact that it is awarded by the public which shows the popular choice of the Sri Lankan people.

This is the 15th successful running of the much-anticipated event conducted by SLIM in association with Nielsen which is globally renowned for its measurement and consumer insights.

Having stood the test time of time in the hospitality industry for more than 3 decades the Galadari Colombo is hopeful to remain in the hearts of its people as a brand that is trustworthy and dedicated to service.

 

 

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Expatriates’ organization painting competition for Sri Lankan children from care homes highlights close India-Sri Lanka ties

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Celebrating 75 years of India’s independence in Sri Lanka, Sri Lankan children from care homes converged in Colombo from all across Sri Lanka over 10-11 April 2021 for the final round of the nationwide painting competition organized by Colombo Expatriates Cultural Association (CECA) – a voluntary organization of expatriates consisting of mainly Indians – with support of the High Commission of India, Ministry of Education of government of Sri Lanka and several other partners.

Prof. G.L Peiris, Minister of Education was the Chief Guest and Gopal Baglay, High Commissioner of India was the Guest of Honour at the final round. Several other dignitaries including State Minister Piyal Nishantha were also present. The dignitaries lauded the effort as a shining example of strong people-to-people ties between India and Sri Lanka and stressed the enormous significance of the enriching experience for the children.

The competition was held in three categories – Sub Junior, Junior and Senior. The first round of the competition had seen enthusiastic participation of 4,375 students from child care homes across Sri Lanka. Contestants from all provinces who had produced sixty best paintings were invited along with one care-giver for the final round held in Colombo on April 10 at Hotel Taj Samudra. While top three winners in all the three categories were awarded SLR 100,000, SLR 75,000 and SLR 50,000 respectively in addition to various other gifts, certificates and medals, all the 60 finalists received cash awards, desktop computers, and other gifts contributed by various sponsors.

The event also formed part of ‘India @ 75’ celebrations in Sri Lanka which comprise events and activities in the run up to completion of 75 years of India’s Independence in August 2022. Prime Minister of India Shri Narendra Modi had launched these celebrations in India on March 12 2021, 75 weeks before the 75th Anniversary of Independence. In Sri Lanka, formal launch of these celebrations had taken place on April 9 2021 with the inauguration of ‘India Corner’ at the Nagananda Institute for Buddhist Studies.

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Chrissworld to raise Rs. 56.25 million through IPO

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By Hiran H.Senewiratne 

Chrissworld Ltd. (CWL), an SME company  engaged in the provision of third-party logistics (3PL) services, is gearing to raise up to Rs. 56.25 million via an initial public offering (IPO) on the Colombo Stock Exchange, sources said.

The company plans to offer 7,500,000 Ordinary Voting Shares for subscription at Rs. 7.50 per share. The subscription will open on April 27, with Atara Capital Partners representing the company as managers to the issue.

Meanwhile, the CSE noted in a statement that it has approved an application submitted by Chrissworld Ltd. for the listing of its Ordinary Voting Shares by way of an offer for subscription on the Empower Board of the CSE.

The company,  starting off with Rs. 6 million capital in 2019, expanded its capital to Rs. 22.5 million and projects to obtain Rs. 79 million after the IPO.

Chrissworld will be earmarking milestones with the IPO as the first to be listed on the Empower Board, CSE’s newest listing platform, dedicated to SMEs. Further, Central Depository Systems (Pvt.) Ltd., a subsidiary company of CSE, will step in for the first time as the registrar to the issue.

Amid those developments the CSE  started  on a bullish note yesterday and during the latter part of the day with heavy retail investor participation the CSE witnessed a bullish trend. It is said that manufacturing sector counters became the most popular stocks during the day. Notable price appreciation was reported in Hayleys Group, Royal Ceramic Group and  Distilleries.    

Both indices moved upwards. The All Share Price Index went up by 100.10 points and S and P SL20 rose by 49.18 points. Turnover stood at Rs. 3.51 billion with a crossing. The crossing was reported in JKH, which crossed 1.32 million shares to the tune of Rs. 199.3 million and its share price was Rs. 151.

In the retail market, companies that mainly contributed to the turnover were; Royal Ceramic Rs. 511.2 million (1.46 million shares traded), Expolanka Holdings Rs. 359.9 million (4.5 million shares traded),  Hayleys Group Rs. 359.9 million (4.5 million shares traded), Dipped Products Rs. 321 million (5.5 million shares traded), JKH Rs. 290 million (1.9 million shares traded), and Haycarb Rs. 177 million (1.5 million shares traded). During the day 87.8 million share volumes changed hands in 23900 transactions.

Hayleys shares appreciated by Rs. 6 or eight percent. Its shares started trading at Rs. 75.90 and at the end of the day they moved to Rs. 82. Royal Ceramic shares appreciated by Rs. 13.5 or nine percent. Its shares started trading at Rs. 328.25 and at the end of the day they moved to Rs. 358.75. Expolanka shares appreciated by Rs. 2.70 or five percent. Its shares  started trading at Rs. 49.70 and at the end of the day they shot up to Rs. 52.40 and Distilleries shares appreciated by 70 cent or 3 percent from Rs. 20.20 to Rs. 20.90  

Sri Lanka’s rupee quoted steady at 202.00/203 to the one month US dollar Monday, while gilt yields remained unchanged, dealers said.

The rupee last closed in the one-week forward market at 202/203 to the US dollar on Friday. Sri Lanka markets were dull as seasonal bliss kicks in.

 

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