LCB Finance IPO seeks Rs. 500 mn zero cost cash 

Lanka Credit & Business Finance Limited (LCB Finance) has announced plans for a public offering of its shares  on the Colombo Stock Exchange through an Initial Public Offering (IPO). The company plans an October 25 listing to raise Rs 500 million, company sources said.

“LCB Finance, which initially began as a grassroot level financial institution, witnessed exponential growth and expansion across the country over the years,” it Chairman Prof. Abeyratne Bandara said.

Under this IPO the company will issue 1.25 million shares at four rupees each to raise Rs 500 million to strengthen its balance sheet and fund future expansion, he said.

Bandara said that as a financial institution committed to support low income earners with a range of micro finance products, LCB was recognized as the Emerging Finance Company of the Year 2019 and awarded “Fastest Growing Non-Banking Financial Firm in Sri Lanka 2021” at the Global Economics Awards 2021 in UK.

The company’s customer base comprise farmers, fishermen, vendors, labourers and small business owners among others, making it a truly people’s development financial institution, Prof Bandara said.

As at end of the March 31, 2021 Financial Year, LCB’s Core Capital was Rs. 2.16 billion, Profit before tax (PBT) Rs. 100 million, Operational Profit Rs. 122 million, Total Assets Rs. 3,672 million, Capital Adequacy ratio 58%, Credit Portfolio Rs. 2.56 billion, the company’s CEO/Executive Director K.G. Leelananda said.

Over the past three years we have made of collective effort and focused on overall betterment of communities. The signature of that trust is deeply ingrained in the business culture of the firm, he said.

“We cater to the needs of individuals across all categories of the economy, the overall logic of operations is strongly inspired by and flavoured with the idea that challenges are best met collectively and that such an approach adds value to individual effort,” he said.

ICRA had rated LCB at [SL] B+ Stable. Following due consideration of the rapid development of the company, this was revised to [SL]+ Stable.