Nov 26, 2011 (LBO) – Entrust Securities, a Sri Lankan licensed primary dealer, is to list 33 million shares through an introduction process on the second board of the Colombo Stock Exchange. The firm, part of the Entrust Ltd. group, deals in government securities like treasury bills and bonds and will be the first non-bank primary dealer to be listed.
Entrust Securities made a net profit of 149 million rupees in the year to March 31, 2011, up 325 percent from the year before, mainly due to an increase in income by 26 percent and reduction in costs, its prospectus said.
Income from interest contributed 80 percent of the firm’s total income which is the main business of the company.
Net profit for the June 2011 quarter fell sharply to seven million rupees from 61 million rupees the previous year with earnings per share down to 21 cents from 2.79 rupees.
Entrust Securities chief executive A H M Riyaz said he believes the recent rise in interest rates will be temporary and a lot of foreign inflows were expected in January.
Interest rate volatility helps primary dealers make profits, he told LBO.
Entrust Securities had a stated capital of 33 million shares worth 2