Fintrex Finance completes Rights Issue of Rs. 600 mn
Fintrex Finance Limited recently completed a rights issue of Rs 600 million from existing investors to fund future growth. Shareholders invested through Bluestone1, the sole owner of Fintrex Finance, in a transaction that was managed by Bluestone Capital Pvt Ltd.
The Capital raise was led by HWIC (Asia), a 100% owned entity of Fairfax Holdings (Canada) who own a 70% stake, MAS Investments and Rosewood Capital. Fintrex Finance concluded its 9-month period ended December 2021 with a post-tax profit of Rs.286.7 million, representing a growth of 407% compared to the previous year.The company’s financial parameters bear witness to its strength as a stable financial institution. With the right issue, core capital base reached Rs.3.2 billion, Capital Adequacy Ratio strengthened to 23.79%. With recorded ROE of 14.95% and a provision cover of 74% the Company has proved its ability to be a strong contender in the financial services sector, especially during challenging times.
Commenting on the FDI from HWIC and the performance of the Company, Chairman, Ajit Gunewardene said “As an institution that recently celebrated 10 years, my team and I are extremely satisfied with the progress of Fintrex.
This FDI during a volatile economic climate is a clear demonstration of investor confidence in our five-year strategic plan to further expand, grow and digitalize our processes, the latter especially being in line with our technology-driven platform for business.”