Tuesday 14 October 2014

Renuka Holdings to enter property development with Rs. 1 b Rights

Renuka Holdings Plc has announced a one for one Rights Issue to raise Rs. 1 billion to finance investment in a property development project in Colombo 3.

The Board resolved yesterday to issue 44.517 million ordinary voting shares at Rs. 21 each and 6.43 million nonvoting shares at Rs. 15 each. The Company’s current stated capital is Rs. 175 million represented by 44.5 million voting shares and 6.4 nonvoting shares.

The foray into property development reflects diversification. The Group has interests in agri business, dairy, consumer and automotive apart from investment and services sector.

The Company’s voting share traded at Rs. 39.50, down by one rupee yesterday. Net Asset Per share at Company level is Rs. 11 and at Group level is Rs. 47 as at June 2014.

Renuka Group and related parties hold a 55% stake. Other major shareholders of voting stakes include NSB (6%), Sri Lanka Insurance Corporation (3.4%) and ETF (3.2%). The largest non voting shareholder is K.C. Vignarajah with a 4.7% stake.

The Group’s total revenue stood at Rs. 1.9 billion for the first quarter of FY15, up by 22% from an year earlier and total comprehensive income amounted to Rs. 88 million, up by 24%. Net profit attributable to equity shareholders was Rs. 50 million, up by 31%
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