Business Times

Finance firms may not be attractive in the long –term

Investors will not be attracted to finance companies – on the long term – when the firms are listed on the stock market as a compulsory requirement before the June 2011 deadline, analysts said.

“Of the 35 registered finance companies, less than 10 are listed. Firms seeking a listing as per the rules may not be attractive as (by then) there may be too much investor exposure to the finance sector,” Deshan Pushparajah, Assistant Manager – Corporate Finance, Capital Alliance told the Business Times on the sidelines of a media conference to launch the Initial Public offering (IPO) of Vallibel Finance.

He said that some finance firms are exposed to different sections in the economy, which may also hamper some investors’ decision in invest in them. Speaking about the Rs 144 million IPO, he said that Vallibal is backed by its group’s strengths. “It has Power Erathna PLC, Royal Ceramics PLC, LB Finance PLC and Amaya Resorts which are in major sectors such as power and energy, investments, banking and finance and shipping, which show its strength,” he said, adding that the company has maintained its Non Performing Loans (NPL) ratio at an impressive 4.2% as at 31st December 2009 vis a vis the industry standard of 7.0%.

He said that Vallibel has increased its deposit base from Rs 473 million to Rs 820 million in 2009 and upto over Rs 1 billion by December 2009, while the average interest margin was 9.5% over the last three years.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
CSE will remain small market
SLIC gets Central Bank sanction to buy over 10% of NDB
CB/EPF stakes in banks: Conflict of interests?
Top banks, Indian firm aim for broking licenses
No passengers to Jaffna? Airlines withdraw
Finance firms may not be attractive in the long –term
Change at the top
Comment - New strategy to attract investments
Feature - Longevity risk: Death of retirement?
Feature - Additional income from rubber plantations and new carbon negative concept
Singer rebrands to ‘Singer Homes’ from ‘Modern Homes’
Derivatives anideal product in post-war economy
Seylan Bank AGM held on Friday
5,000 kgs of tea withdrawn from domestic market last week
UNP puts its economic view online
Computer firm Ezy aims to raise Rs 100 mln by 2015 for its new racing segment
SL Convention Bureau promotion in the Far East
Hedging Cases: Deutsche Bank claim in international arbitration in July
Knowledge Conglomerate to launch ventures
DHL Keells positive on Sri Lankan growth
Credit Card helps eliminate risk in carrying cash
Globalisation led to 'knowledge economy' : Chief Justice
Solid response to NTB’s 2010 warrants (shares)
Sri Lankans have limited access to their own seas-industrialist
AMW Obtains IMI Accreditation – first in South East Asia
Taj Hotel group opens regional skills centre in Colombo
SLT ranked number one in Top 10 competition
HSBC cash for special clients thro’ Keells Super
Sri Lankan economy set to grow –Asian investors told
Fiscal deficit causes IMF to delay loan
Groundwork of pruning the cabinet gets underway
Bank of Ceylon to open 31 more branches in the North and East
Lumiére Residencies receives CMA certification
IFS signs US-government prime contractor Sabreliner
Eight Kurunegala poultry farmers receive assistance
Israel to 'enhance' economic ties with SL
Heritance Ahungalla organises Six-a-Side Beach Cricket Tournament
Dialog receives award for M-waste Management
Corporate climate responsibility - Case for a green economy
Former Malaysian PM Mahathir here in June for business event
Only 0.14% of SL GDP towards R&D, others 1.5%
Column - The office: Paperless and work on the move
New SKAL committee
Fitch affirms rating on Singer
Lanka Ceramic sales pick up after showroom upgrade
Global Finance picks Commercial Bank as Sri Lanka’s best for 12th year in a row
Oracle solutions for mid-sized Sri Lankan companies


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution