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The shares will be issued to fixed deposit holders to convert 10 percent of fixed deposits held with the firm as at September 21, 2010 into equity.
The firm will also issue 40 million ordinary voting shares at 40 rupees each to raise cash for working capital needs especially to fund investments, the statement said.
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The issue of shares, which will be listed on the Colombo stock exchange, is subject to approval by the stock exchange and shareholders at a general meeting.
The Finance, which is recovering after a run, was recently ordered by the central bank to raise 1.6 billion rupees in fresh capital by attracting new investors and converting deposits into shares.
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The regulator intervened to stabilize The Finance Company after it suffered a run with the collapse of several firms in its parent Ceylinco Group.