18th January 2012, www.lankabusinessonline.com
Sri Lanka's Heraymila Capital (Pvt) Ltd, a unit of Dubai-based Herayamila Investments Limited has launched an equity fund offering 500 million units at 10 rupees each.
The open-ended fund will sell units at the offer price until January 31 and at market value thereafter.
Heraymila Capital Growth Fund, will invest primarily in listed Sri Lankan equities as the island is poised to grow after ending a 30-year war.
"Key sectors such as construction, manufacturing, retail , tourism and financial services are poised to benefit from post war investment, infrastructure development, higher disposable incomes, and better destination ratings," the firm said.
Last year Sri Lanka grew at 8.3 percent though officials are expecting slightly lower growth this year.
Sri Lanka's stocks rose for two years after the end of a 30-year war peaking in February 2011 at price to earnings multiple of 29.5 times.
The market has since been re-priced at 15.3 times.
"The launch of the fund is therefore timely and well positioned to take advantage of the post war expansion taking place in Sri Lanka," the firm said.
Though targeting 5.0 billion Rupees (44 million US Dollars) it will start operations with a billion Rupee seed capital.
"Investors will benefit from Heraymila Investment Limited's risk management processes, investment processes and vast experience in investing in other similar markets," the company said.
"Furthermore, HCL has employed portfolio managers with many years of experience in Sri Lankan capital markets and in managing unit trust funds. The trustee and custodian of the fund will be Deutsche Bank, Colombo."
Related Info :
• Saudi Arabian Heraymila Investments of Al Mashal's Start a Fund to Invest in Listed Sri Lankan Companies