Senkadagala Finance Company Limited - Trading

Hi Friends,
What do you think about arrival of Senkadagala Finance Company Limited to CSE..?
(i.e. with out an IPO)

Senkadagala Finance was formed in Kandy in 1968. Since then, the company has become one of the largest licensed deposit taking institutions registered with the Central Bank of Sri Lanka. From it's birth in Kandy, the company now has gone islandwide.

As at the end of financial year 2009/2010, the total assets of the company are 5.87 billion Rupees.

Annual reports and all relavent infor avialble here for download.

https://www.senfin.com/about_us.html#ar

Our previous discussion here:
http://forum.srilankaequity.com/t1333-senkadagala-finance-company-limited-introduction?highlight=Senkadagala+Finance

milanka wrote:

Senkadagala Finance was formed in Kandy in 1968. Since then, the company has become one of the largest licensed deposit taking institutions registered with the Central Bank of Sri Lanka. From it's birth in Kandy, the company now has gone islandwide.

As at the end of financial year 2009/2010, the total assets of the company are 5.87 billion Rupees.

Annual reports and all relavent infor avialble here for download.

https://www.senfin.com/about_us.html#ar

Great.. Thanks dude

can anybody tell me how this share is trade. Every first day who is the seller? The company or private placement share holders? Can we buy @ a fix price or will it rocket like CDB and come down?

Existing share holders will sell openly in the market, so u can buy.. there'll be demand and supply accordingly.. I would not expect this to go up like CDB, but who knows

WE have to do some analysis before buying this

smallville wrote:Existing share holders will sell openly in the market, so u can buy.. there'll be demand and supply accordingly.. I would not expect this to go up like CDB, but who knows

WE have to do some analysis before buying this

Any idea about the starting price....? Thanks

Hi experts,

Any idea about the starting price...? Thanks

smallville wrote:Existing share holders will sell openly in the market, so u can buy.. there'll be demand and supply accordingly.. I would not expect this to go up like CDB, but who knows

WE have to do some analysis before buying this

Here what do you mean by existing share holders? Is it those who bought shares from private placement, private right issue etc..?
My understanding is that company is listing brand new shares which is not owned by anyone (don't know whether it's a silly thinking ). These new 53 million ordinary shares will be sold, and at the same time existing share holders will also sell if they wish to. That'll be in addition to the above 53 million. Isn't that how it happens?

When reading about CDB I read that 'The share which was pegged at Rs 15.00...'. So it had a initial value of 15 tagged but it start trading at 60? Similarly this will also have a initial value marked before it start trading right?

i am not interest this private placement thing, So I am not gonna buy

When a company is a private company, still there are share holders for it, so they can sell their ownership right through this introduction at any price (provided that buyers are there).. existing shares are sold and the money collected will be directed to the existing shareholders. This is an opportunity for them to either exit or make some profit..

More abt IPOs;
http://www.thinktrade.net/ipos.php

I'll never buy shares from the privet placement....
Because there are so many other counters to collect other than offering our poor money to such peoples.
Do not go for such collecting in privet placement counters in the first days of trading. Don't make panic buying just like IPO mind..

npc86 wrote:I'll never buy shares from the privet placement....
Because there are so many other counters to collect other than offering our poor money to such peoples.
Do not go for such collecting in privet placement counters in the first days of trading. Don't make panic buying just like IPO mind..

An Excellent vissoin... Thanks a lot !

npc86 wrote:I'll never buy shares from the privet placement....
Because there are so many other counters to collect other than offering our poor money to such peoples.
Do not go for such collecting in privet placement counters in the first days of trading. Don't make panic buying just like IPO mind..

As per the SEC announcement, PPs done on an IPO must stay abt 1yr for those shares to be traded in market.. So these bigh guys are stuck for a year with these money, if they do so, they gotta analyse the future prospects for the company and take it as a long term investment.. So I think its just ur view on these PPs as u mentioned.. Other than that nothing to be worried over a shares drop in the middle for profit taking..

I am confused

Is the Introduction and Private placement is same thing or are you guys talking about two things

If I buy shares from Senkadagala finance on 22nd, I can sell them on the same day or any day later right?

Please explain

Introduction and Private placement are two things..

Private placement - is a share sale. lets say before an IPO or an introduction at a reduced rate to attract investors..but as per new rules these investors must keep these shares for 1yr period before they can sell it.

Introduction - listening of a company in CSE. Listening of a company in share market can be done thru an IPO or an introduction. In an IPO news shares are issued hence company can raise money, in a intro-existing shares holders are given a exit route to sell those at a price where market buys it.. no new money is coming to the company.

If u buy shares from Senkadagala finance on 22nd, u can sell them on the same day or any day later, correct

So u dont have to worry abt buying shares of an intro..

Thanks for the explanation smallville

@newcomer
There is nothing to worry about buying from an introduction...but make sure that u are not buying those at the peak... (like CDB @ 150 levels)

tkc wrote:@newcomer
There is nothing to worry about buying from an introduction...but make sure that u are not buying those at the peak... (like CDB @ 150 levels)

Thanks tkc

How about buying as soon as trading starts...then most probably it'll be at a lower level I guess. There can be cases like LGL (I have heard about that, wasn't trading at that time). But in general, most of them will go up right?

Dont burn ur fingers just jumping in.. u gotta enter in the correct time or else u wont be able to sell it off (like CDB)..

Let's put some initial numbers on the table:

Senkadagala Finance (SFCL) has 53.368 million shares - it is controlled by EW Balasuriya and Co, who together with Directors own around 90% of company. A further 7.7% is owned by senior management (2 persons mainly). There are in total only 19 shareholders of company.

Its unaudited net profit for 9 months ended 31st December 2010 was Rs161 million, which gives a 9 month EPS of Rs3. Its shareholder funds as at 31st dec 2010 were Rs1,029 million, which gives a book value of Rs19 per share.

CEO of Capital Alliance group, Mr. Ajith Fernando is on the board of Directors.

- All data from Introductory Document of SFCL.

cse.alpha wrote:Let's put some initial numbers on the table:

Senkadagala Finance (SFCL) has 53.368 million shares - it is controlled by EW Balasuriya and Co, who together with Directors own around 90% of company. A further 7.7% is owned by senior management (2 persons mainly). There are in total only 19 shareholders of company.

Its unaudited net profit for 9 months ended 31st December 2010 was Rs161 million, which gives a 9 month EPS of Rs3. Its shareholder funds as at 31st dec 2010 were Rs1,029 million, which gives a book value of Rs19 per share.

CEO of Capital Alliance group, Mr. Ajith Fernando is on the board of Directors.

- All data from Introductory Document of SFCL.

Thanks for the info. Where can we find that 'Introductory Document of SFCL'?

smallville wrote:Dont burn ur fingers just jumping in.. u gotta enter in the correct time or else u wont be able to sell it off (like CDB)..

Thanks for the advice.

How to identify the correct time to enter? Is it Experience ?

2011_NewComer wrote:

Thanks for the info. Where can we find that 'Introductory Document of SFCL'?

**

Copies of Introductory Document have been sent to all brokers - but only limited copies it seems.

Else the Managers to the Introduction, Capital Alliance should have copies (Tel - 2317777) or contact their broker Capital Alliance Securities.

here's the link for the intro doc.
https://www.senfin.com/images/sfcl_introdoc.pdf

The SEC and CSE should have made sure that this was available on the CSE webiste at least a week before the first trading day. The SEC is letting all the corner grocery shops go for IPOs and Introductions but the investors are kept in the dark about the financials.

Thanks for sharing innam