Singer Finance announces major rights issue of over 76 million shares

Singer Finance Limited has announced a rights issue involving the creation of 76,648,787 new ordinary voting shares, marking a substantial capital mobilisation effort by the diversified financial services group.

Under the proposed terms, existing shareholders will be entitled to subscribe for eight new ordinary voting shares for every 29 ordinary voting shares currently held in their portfolios. The ratio-based allotment structure is designed to ensure proportional participation across the shareholder base while maintaining existing ownership percentages for those who take up their full entitlements.

Rights issues serve as a primary mechanism for listed companies to strengthen their balance sheets and fund expansion initiatives or operational requirements. The move by Singer Finance reflects the institution's capital management strategy as it navigates the evolving financial landscape in Sri Lanka.

The announcement comes as part of Singer Finance's corporate governance framework, with detailed terms and conditions of the rights issue expected to be communicated to shareholders through formal notices and stock exchange filings. Eligible shareholders will have a specified period within which to exercise their subscription rights for the newly offered shares.

Singer Finance, a prominent player in Sri Lanka's financial services sector, continues to expand its market presence across lending, investment, and related financial services operations.