Sri Lanka Finco cuts stake in newly listed apparel firm

Dr. Harsha Cabral PC

June 30, 2011 (LBO) – Sri Lanka’s Finco group has reduced its stake in Orient Garments, a newly-listed apparel subsidiary, when it began trading Wednesday, a stock exchange filing said. Finco Holdings, which held 80.98 percent of Orient Garments, sold 10,983,400 shares of its holding constituting 20 percent of the apparel exporter’s issued capital at an average price of 28.07 rupees a share.

Orient Garments shot up 21.30 percent or 4.90 rupees to close at 27.90 rupees on its trading debut Wednesday, from its reference price of 23 at which a stake had been sold in a private placement earlier.

Altogether 15 million shares changed hands Wednesday, hitting a high of 40 rupees and a low of 26.50 during the day.

A 16.4 percent stake (nine million shares) were bought by high-net-worth investor T Senthilverl at an average price of 28.01 rupees a share, a stock exchange filing said.