Laxapana Batteries to raise Rs. 540 million through right issue

By Hiran H.Senewiratne 

Laxapana Batteries PLC will go for a right issue to raise Rs. 540 million with the issuing 36 million new shares at a price of Rs. 15 per share to the public. Under this right issue 12 new shares will be given for every 13 existing shares, stock market analysts said.

With the  funds raised for the issue  the company will use them to penetrate the renewable energy sector. The government has proposed several incentives and support in the 2021 budget for such ventures, market sources said. 

‘In our  view, the COVID-19 impact on our steel wire segment will not be long-term. However, we do not expect a significant impact on our future revenue from hardware products when normalcy returns. Nevertheless, we recommend that investors, who wish to trade, take into account the present global economic situation and market uncertainties, company sources said.

Amid those developments, the CSE was sluggish throughout the day because the 2021 budget has not given a big boost to the stock market, analysts said.

Turnover stood at Rs. 1.4 billion sans a single crossing. Both indices moved downwards, i.e., the All Share Price Index went down by  42.43 points and S and P SL20 declined by 9.34 points. In the retail market, top five companies that contributed to the turnover were, Expolanka Rs. 311 million (11.8 million shares traded), Dipped Products Rs. 109 million (335,000 shares traded), Hemas Rs. 92.2 million (1.1 million shares traded), Melstacorp Rs. 83.6 million (2.2 million shares traded) and Tokyo Cement Rs. 66.1 million (1.05 million shares traded), During the day 92.5 million share volumes changed hands in 16523 transactions.

Sri Lanka rupee quoted steady at 184.60/80 to the US dollar in the spot market on Thursday, while gilt yields remained unchanged in dull market trade, dealers said. The rupee closed at 184.60/70 to the US dollar on Wednesday.