Source : Prospectus Debenture Issue 2021 LOCH
Quote
5.2.3 Details of the Acquiree- LOLC Development Finance PLC (“NIFL”) LOCH shall hold 55.55% of shares in NIFL after the equity infusion. The acquisition of such stake will be partly funded by the proceeds from the debenture issue and the balance will be funded by the parent, LOLC Holdings PLC, via equity infusion. Percentage of shares to be held by LOCH in NIFL after the full utilization of the debt IPO can’t be determined at present, because the purchase price for the share transfer of NIFL would be executed at the last traded market price at the point of the share transfer. Share transfer is expected to be completed within 2 weeks from the date of LOCH becoming a listing entity.
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Background
Many retailers who wondered about the current CLC rally got to know the reasons behind and the road map of LOCH, through Social Media and by many events that took place at the end of last week.
A few “poor” HNWIs who couldn’t enter the CLC counter at the beginning of the rally, started crying foul by Twitting messages and some went to the extent of discussing their missed opportunity at a forum in Dubai.
That was huge publicity given for LOCH and LOLC ASIA amongst the prospective Foreign Investors which ISHARA couldn’t have had done with expending millions of dollars told me a ( laughing ) CEO of a Brokering firm.
Major shareholders of NIFL
- LOLC Holdings - 55.55 %
- CLC - 44.34 %
Major shareholders of CLC
- LOLC Holdings - 98.92 %
- Browns Investments PLC - 0.63%
Major shareholders of LOFC
- LOLC Private ltd - 49.81 %
- LOLC Holdings - 42.81 %
According to the Prospectus of Debenture Issue, the transfer of NIFL to LOCH is expected sooner than later, in fact, there has been a delay of one week by last Friday. Many experts believe that, with this most awaited announcement from the parent, NIFL counter will start its second major rally, and NIFL will be a first-place winner in the Market Cap, within a very short time.
Witnessing the inception and the listing of a One Trillion corporate in the CSE is a golden memory of any type of investor in the CSE and “wasn’t expected something like this to happen even in next decade”, told me a well-wisher of the LOCH & LOLC ASIA . The presence of the LOCH “will attract many foreign investors to the CSE”, creating an abundance of opportunities in the Market for local retailers, he further added.
What will happen to CLC ..? asked me many friends after its fabulous run last Friday.
When referring to the technical instruments, it was astonishing for me to see a newly appeared trend line (based on the last four day’s trading) which is directed towards 130 – 145 points.
Also, many popular and commonly used indicators are still flagging an upward momentum with creating almost 75-degree positive angles. Being a strong believer in technicals I have no point in not assuming that 130-145 level is not realistic. When I happen to see the last week’s trend line which was towards the 120 level I referred it to an expert analyst in the trade asking for his wisdom; “ believe in what you see and let the charts do the talking“ was the answer from him. Averaging 12.2 Mn shares over Rs 84.60 is a huge indication of the strength of the Bull who might run another 50 – 60 miles without taking a breath, I presume.
Why don’t you talk on LOFC? questioned, many.
The first entity to be transferred to the LOCH is NIFL and immediately to be followed by CLC. NIFL and CLC have a complementary relationship as CLC owns 50% of NIFL . Prevailing CLC run solely depends on NIFL’s transfer to be taken place next week or later.
Although I have a lot to talk about, I wish to refrain from tarnishing the ongoing rally of LOFC by revealing any sensitive information, as the movement of LOFC is definitely a plus point for NIFL/CLC/LOCH/LOLC prices.
LOFC is the favorite and will be my number one pick for 2022 Y , but not early than that.
In my knowledge, the current (mild) rally is two weeks pre-mature and I was afraid of entering last week, as I sense some heat from “ wrath of the Master “ .
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