Adam Investments share issue aiming at Rs 400 mn equity


By Steve A. Morrell

Issue of Adam Investments 133.3 million ordinary shares will be quoted at Rs. 3 per share. At this quoted price, the equity expected to be raised will be in excess Rs 400 million. Closure of the subscription will be on June 5 or when the issue is over subscribed, whichever comes first, Adam Investments chairman Dr. Ali Asger Shabir Gulamhusein said, addressing the press recently. He indicated that the public share issue of the company would open on May 19.

Retail individual investment of 40 % would amount to 53. 3 million shares. Unit Trust and non retail issue will add to 100 % of the total share capital.

The hallmark for investment is the established credibility of expertise available at Adam Investments, who were collectively responsible for the quoted instance of Orient Garments, an enterprise recording continuous losses, re- establishing itself into the realm of business profits, after Adam Investments bought over their assets. Gulamhusein said the turn – around was valued at about 864 percent. In real monetary terms, this amounted to Rs 113.2 Million, Which, he said, was remarkable.

‘We look for value in our investments. Meaning we buy companies when their valuations are realistic. We implement sound internal procedures and ensure viability in the short run. Hitherto, our successes have been substantial. The new equity offer and our enhanced public image would translate into a successful enterprise. More so, our record to ensure strength of management to refurbish an entity for turn-around strength already established, would enhance our standing and credibility, the chairman explained.

The board of Adam Investment at the head table were, additionally, CEO / ED Larry Adams, Executive Director, Danushya Mediwake Gulamhusein, Non - Executive Director, Thaher Abbas Gulamheusein, Non - Executive Director Idris Shabir, Non- Exc. Director Malayandi Jeyaprakash, Exc. Dir. Loolbadd Waduge, Independent Director Govindasamy Ramanana and Non- Exc. Director Imran Zahir.

The group structure includes Adam metals, Net work communication, Adam Apparels, Adam Automobiles, Adam Air Conditioners, Orient Garments, Ceylon and Foreign Trades, and PC House holdings.

Questioned by the press on their future garments manufacture, on their total manufacturing process of the sequence of cotton to yarn, yarn to fabric and fabric to finished product, the chairman said this would eventually be their aim.

Additionally of significance was that they would not seek only Western markets, but would move East. The population structure was such that Eastern markets held the greatest per capita consumption and re-strategizing markets was beneficial in terms of sales and profits.

The green aspect too was positively considered, when new structures were envisaged.

- Pic by Jude Pathiraja.

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