Saturday 21 April 2018

Sampath follows 2017 practice in allotting additional shares in 2018 rights issue

Applicants get up to 2,100 shares plus very small percentage of balance sought

Sampath Bank’s rights issue of approx. 50.13 million shares allotted in the proportion of three for 13 shares held at a price of Rs. 250 per share has been fully subscribed with applications for additional shares comfortably absorbing the lag of unsubscribed shares.

"Refund cheques for additional share applications that could not be accommodated were sent out last week," a broker said. "Each applicant for additional shares was allotted up to a maximum of 2,100 shares and a very small percentage of the balance."

Analysts noted that with large applications for additional shares over and above entitlements coming in from many shareholders, the bank which followed the scheme of allotment utilized in the rights issue in November last year could not allot as many shares per applicant as last time.

"While up to 9,000 shares per applicant for additional were accommodated last time, this time it was possible only to allot up to a maximum of 2,100 shares plus a very small percentage of the balance," an analyst said.

Over and above the ceiling of 2,100 a small fraction of the balance sought was granted. "I got 36 shares on that account after applying for 10,000," one subscriber said.

"Given the gap between the issue price and the trading price, subscribers did very well," the analyst said.

The previous Rights Issue 2017 saw Sampath raising Rs. 7.6 billion new equity (zero cost capital) by the issue of approx. 31 million new shares, priced at Rs. 245 each, in the proportion of one new share for every six held.

This year’s rights issue saw the allotment of 50.13 million (approx) new shares issued at Rs. 250 a share on the proportion of three for 13 held to be listed on April 23.

Sampath also announced its scrip dividend dates to the CSE last week. The date of entitlement will be Apr. 26 and the share will trade XD from Apr. 27. The scrip dividend will be one new share for (approx) 19.728 shares held on April 26 trading XD from April 27.

The Sampath share traded above Rs. 300 on the CSE in recent days with Friday’s price ranging between Rs. 305.10 and Rs. 308.

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