Connect with us

Business

Three listed companies adopting share split strategy to boost liquidity & share price

Published

on

Each existing EB Creasy share to be split into 100

Three companies listed on the Colombo Stock Exchange have announced decisions to subdivide their existing issued shares with no change in their stated capital in what is considered a measure intended, in the view of brokers and analysts, to increase the market liquidity of their shares with prospects to increase their price post-subdivision.

Among those companies that has announced subdivision of shares is old-established EB Creasy and Co. PLC, a member of the Colombo Fort Land and Buildings group, where a subdivision of each existing share into 100 new shares is pending.

The other two companies where subdivisions are pending are CIC Holdings PLC where a subdivision of each existing share into four has been announced and Lanka Aluminium Industries PLC where each existing share would be split into five.

Although there have been share splits since the new Company law came into effect on 2007, brokers and analysts could not recall a share split as big as what is proposed by EB Creasy which concluded its last Annual General Meeting for the year ended Mar. 31, 2020, on Dec. 30. A dividend of Rs. 18 per share (pre-share split) was adopted.

“Given that the company’s issued capital (stated capital is what now applies) was small, the Creasy share which is seldom traded has commanded a very high price on the trading floor of the CSE,” a broker said.

It last traded a few days ago between Rs. 3,150 and Rs. 3,070 with 506 shares changing hands in 34 trades. Its par value per share was Rs. 10 when par values applied. That concept went out with the introduction of state capital under the new company law.

Brokers and analysts said that there is a push-up factor possible in share splits but this has not always worked out.

“Consider an example of a company whose share is trading at Rs. 50 when a split of two new shares for each existing share is announced. Theoretically each new share should then be worth Rs. 25 but it doesn’t always work out that way, depending on market conditions. Shareholders always hope for a favourable movement from such measures,” a broker said.

CIC Holdings which has two classes of shares, voting and non-voting, will divide each existing share into four. An Extraordinary General Meeting has been called for Jan. 5 to secure shareholder approval for the proposed measure. The subdivision will apply to both voting and non-voting shares.

The CIC voting share last traded on the CSE between Rs. 184.90 and Rs. 182 closing at Rs. 182.30 with 57,601 shares transacted in 53 trades. The company paid two interim dividends of one rupee each for the financial year ended Mar. 31, 2020.

At Lanka Aluminium, each existing share will be split into five. Its share last traded at a range of Rs. 112.70 to Rs. 113.30 closing at Rs. 112.70 with 71,059 shares transacted in 119 trades. The company paid a first and final dividend of one rupee for the last financial year.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Hemas Consumer strengthens portfolio with L’Oréal partnership in Sri Lanka

Published

on

Hemas Consumer, the leading manufacturer and distributor in Sri Lanka’s beauty and personal care sector has strengthened its portfolio of offerings in a groundbreaking partnership with the world’s number one beauty company, L’Oréal. With this partnership Hemas Consumer obtains distributor rights to leverage its sales network and innovative marketing approaches in taking L’Oréal’s wide range of beauty and personal care brands across Sri Lanka.

Commenting on the new partnership, Sriyan de Silva Wijeyeratne, Managing Director, Hemas Consumer & Executive Director Hemas Group said, “We have spent over fifty years building successful and strong consumer brands in Sri Lanka. In keeping with our promise of consumer delight and trust, we are elated to partner a world-class cosmetics group like L’Oréal expanding our existing portfolio with the world’s most sought-after beauty and personal care products.

We are well equipped in our distribution process with island-wide sales channels to serve all parts of the country. I believe this partnership will revolutionize Sri Lanka’s beauty care industry and more prospects await as we continue to look ahead with L’Oréal.”

Sabrina Esufally, Director Business Development and Innovation at Hemas Consumer said, “This partnership will enable Sri Lankans to access the iconic brands and solutions created through years of research and innovation by L’Oréal. In the fast evolving and dynamic beauty industry, the combined strength of Hemas’s local heritage and penetration, and L’Oréal’s global technology and trust is the perfect recipe for consumer delight.”

Continue Reading

Business

DFCC Bank supports industrial excellence by partnering CNCI Achiever Awards

Published

on

DFCC Bank PLC, stepped up once again for the 3rd consecutive year to partner with the Ceylon National Chamber of Industries (CNCI) as the principal sponsor and official banking partner of the CNCI Achiever Awards 2020.

The CNCI Achiever Awards was held for the 19th consecutive time to recognize the outstanding efforts of exceptional performers who have molded their respective industries with innovative solutions, while overcoming challenges and meeting the demands of their clientele. This year, the event was recently held under strict health guidelines at the Galadari Hotel in Colombo. 

Commenting on the sponsorship, Chief Executive Officer of DFCC Bank PLC Lakshman Silva stated, “We are pleased to have partnered with the Ceylon National Chamber of Industries (CNCI), as the Main Sponsor and Official Banking Partner of the 19th CNCI Achiever Awards 2020. DFCC is honored to partner in reconciling successful Sri Lankan businesses from various industrial sectors. Our partnership with this prestigious awards programme aligns seamlessly with our commitment to foster and reward industrial growth across the country and support local entrepreneurs in MSME & SME sectors.”

 

 

 

Continue Reading

Business

Lanka SSL triumphs with National Gold and Top Ten Awards

Published

on

CNCI Achiever Awards 2020

Lanka Special Steel Limited (Lanka SSL), a trusted name in wires and a fully-owned subsidiary of E B Creasy & Company PLC, was recently awarded the coveted National Gold Award under the Extra Large category in the Manufacturing Sector at the Achiever Awards 2020 for Industrial Excellence.

The annual event organized by the Ceylon National Chamber of Industries (CNCI) was held in March 2021 at Colombo, and celebrated some of the leading industrialists in the country for their tremendous and continued efforts in uplifting and promoting quality standards, productivity, growth and strategy, R&D, employee welfare and others whilst contributing to both the society and economy at large.

‘We are immensely proud to have been recognized with two very prominent awards at this year’s CNCI Achiever Awards. It is a huge leap from just winning a Merit Award the last time around, and this incredible achievement certainly reflects our highly ambitious plans to strive for continued excellence. We would like to thank our valued customers and all stakeholders. We are grateful to our hardworking and committed staff at Lanka SSL who have made this possible,’ said Pravin De Silva, CEO of Lanka SSL.

Continue Reading

Trending