Dankotuwa Porcelain PLC (DPL) will be raising Rs. 722.46 million by the way of a new rights issue to modernize its plant and settle short-term loans, according to an announcement at the Colombo Stock Exchange (CSE).
The rights will be issued in the proportion of 5 new shares for every 4 currently held, for 90.31 million shares, at an offer price of Rs. 8 per share. The last traded price of DPL shares was Rs. 12.
The current stated capital of the company is Rs. 679.64 million, represented by 72.25 million shares. DPL said that the rights are subject to CSE and shareholder approvals.
In the latest available financial statements for the 4Q15, DPL posted a net loss of Rs. 111.4 million, falling further from a Rs. 34.82 million net loss year-on-year (yoy), with a loss per share of Rs. 1.54 compared to Rs. 0.48 loss yoy. Revenue fell 8 percent yoy to Rs. 470.22 million, while cost of sales increased 2 percent yoy to Rs. 451.22 million, leading to a gross profit of Rs. 18.99 million, which is a 73 percent fall yoy.
Distribution expenses increased by 41 percent yoy to Rs.59.81 million, and administrative expenses increased 65 percent to Rs. 81.65 million, while finance costs fell 9 percent to Rs. 23.15 million. The company had retained losses of Rs. 271.03 million for the 4Q15 increasing from Rs. 160.59 million in 3Q15. Long and short term interest bearing borrowings amounted to Rs. 1.13 billion, decreasing marginally from Rs. 1.16 billion in 3Q15.
Since December 2013, DPL has assumed the debt liabilities of subsidiaries Royal Fernwood Porcelain Ltd (RFPL) and Taprobane Capital (Pvt) Ltd worth Rs. 253.62 million, while providing Rs. 151 million in financial assistance to support the working capital of RFPL. The group had assets worth Rs. 2.57 billion, increasing from Rs. 2.71 billion in 3Q15. Seylan Bank PLC/Lanka Century Investments PLC owned 58.36 percent of shares in DPL, while Kokyo Tatemono Company Limited owned 8.59 and Ceylon Leather Products PLC owned 8.31 percent.
Courtesy: Daily Mirror 31 July 2015