By J. Kurukulasuriya
Ceylon Finance Today: Blue Diamonds Jewellery Worldwide, which initially announced its Rights Issue of shares on 16 October have announced the details and proportions of the issue today — Wednesday. Voting shares will be sold to shareholders at a price of Rs 1.30 per share and non-voting shares at 75 cents each.
The share traded at Rs 1.80 per voting share and 80 cents per non-voting share, today. However, leading share brokers whom Ceylon Today spoke to were unenthusiastic about the prospects of the share. "It is not an actively traded share, furthermore there are many shares on the market with much better fundamentals", one broker said.
During the six months ended 30 September the company made a loss of Rs 28 million, up by 385% from the loss of 6 million sustained in the previous corresponding period. The balance sheet carries an accumulated loss of Rs 124 million.
The company had a close relationship with Fior Drissage Jewellers Ltd- FDJ — to whom they have loaned approximately Rs 4.2 million as at 30 September. But the company has passed a board resolution "to cease the identification of investment in FDJ as an investment in an associate, due to fall in percentage of investment in FDJ and non availability of factors to exercise significant influence over the operations & business affairs of FDJ".
The company is hoping to raise a sum of Rs 134 million in the form of ordinary voting as well as another Rs 115 million in the form of ordinary non-voting shares, a total of approximately Rs 250 million. They will be issued to existing shareholders in the ratio of one new share for every one existing share. In effect the company is seeking to double its share capital.
"The purpose for which the proceeds of the issue are to be utilized are for the establishment of a research & development unit, establishment of a global design centre, investment in new machinery, marketing, and international trade fair participation, and for investment in inventory", states the company's interim financial report as at 30 September.
Xia Liqiang is the largest shareholder of the company with 15.51% of the shares or 16,023,215 shares. Sri Lanka Insurance Corporation Ltd – General Fund holds 10.22% of shares. The public holding as defined by the CSE is 89.20%.
The company announced that the general meeting for the approval of this issue and provisional allotment of shares will take place on 16 December, and the rights will commence trading on 30 December.
www.ceylontoday.lk
Ceylon Finance Today: Blue Diamonds Jewellery Worldwide, which initially announced its Rights Issue of shares on 16 October have announced the details and proportions of the issue today — Wednesday. Voting shares will be sold to shareholders at a price of Rs 1.30 per share and non-voting shares at 75 cents each.
The share traded at Rs 1.80 per voting share and 80 cents per non-voting share, today. However, leading share brokers whom Ceylon Today spoke to were unenthusiastic about the prospects of the share. "It is not an actively traded share, furthermore there are many shares on the market with much better fundamentals", one broker said.
During the six months ended 30 September the company made a loss of Rs 28 million, up by 385% from the loss of 6 million sustained in the previous corresponding period. The balance sheet carries an accumulated loss of Rs 124 million.
The company had a close relationship with Fior Drissage Jewellers Ltd- FDJ — to whom they have loaned approximately Rs 4.2 million as at 30 September. But the company has passed a board resolution "to cease the identification of investment in FDJ as an investment in an associate, due to fall in percentage of investment in FDJ and non availability of factors to exercise significant influence over the operations & business affairs of FDJ".
The company is hoping to raise a sum of Rs 134 million in the form of ordinary voting as well as another Rs 115 million in the form of ordinary non-voting shares, a total of approximately Rs 250 million. They will be issued to existing shareholders in the ratio of one new share for every one existing share. In effect the company is seeking to double its share capital.
"The purpose for which the proceeds of the issue are to be utilized are for the establishment of a research & development unit, establishment of a global design centre, investment in new machinery, marketing, and international trade fair participation, and for investment in inventory", states the company's interim financial report as at 30 September.
Xia Liqiang is the largest shareholder of the company with 15.51% of the shares or 16,023,215 shares. Sri Lanka Insurance Corporation Ltd – General Fund holds 10.22% of shares. The public holding as defined by the CSE is 89.20%.
The company announced that the general meeting for the approval of this issue and provisional allotment of shares will take place on 16 December, and the rights will commence trading on 30 December.
www.ceylontoday.lk
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