RPC seeking one billion rupees through rights issue

Richard Pieris & Company Ltd wants to raise Rs 1 billion through a rights issue of 2-for-9 at Rs 35 per share to help overcome the company’s total debt which has increased over the last few years, and retire this debt.

The company said in a statement it has in recent years made substantial investments; including the purchase of controlling interest of Kegalle, Maskeliya and Namunukula Plantations, acquisition of 10% holding of NDB, rapid expansion of retail infrastructure and other key sectors.

Chief Operations Officer-Pravir Samarasinghe said, “The high inflationary environment in the country and the resultant increase in interest rates in the last 12 months by almost 6%-8% on rupee borrowings has impacted the company’s performance adversely.

At the present debt and interest rate levels the Board of Directors feel the company’s performance and its future growth potential is being considerably impeded by the current high finance cost.”