Ceylon Finance Today: Renuka Holdings which raised over Rs one billion in cash last year through a rights issue, apparently for a property development project at Galle Face, Colombo, has however seen this project stalled for over a year.
Nonetheless, the company in a stock exchange filing made on Monday said that the project would kick start in the latter part of next year.
It said that the delay was due to obtaining BoI approval and the discovery of a sewage line at the proposed development site.
When this reporter asked a representative from the secretaries to the company, namely Mrs. S.S.W. Senanayake, director, Renuka Enterprises (Pvt.) Ltd., whether the property in question was their own property? She replied in the affirmative.
She, however was unaware what the details of this investment would be.
When asked as to why, prior to the rights issue, the company didn't get BoI approval or check whether there was a sewer line running in or through the property? She asked to level those questions to the directors.
The company is controlled by the Rajiyah family, Dr. S.R. and Mrs. I.R., and is largely in the food business, with the prime concentration being on coconut related food products.
However, neither of the two was immediately available for comment.
Nevertheless, the company's secretaries in their letter to the Colombo Stock Exchange had however said that the sewage pipe has been relocated (it was done last month), while BoI approval for the project was finally obtained in August 2015.
Upon commercial operations, the project would enjoy an eight year tax holiday, the secretaries said.
Meanwhile, in the rights issue held by the company late last year, it was able to raise a sum of Rs 1.03 billion.
The issue which was oversubscribed, comprised the provision of 44.52 million new voting shares at Rs 21 each and another 6.43 million non voting (NV) shares at an issue price of Rs 15 each. The ratios of both of those issuances comprised on the basis of 'one for one' each. These new shares were listed a year ago on 17 December, 2014.
The company has since made one dividend announcement/payment, ie of 35 cents a share, both voting and NV (announced on 6 August, 2015), with payment to have had been made on 30 September, 2015.
Though the company in the second quarter (2Q) ended 30 September, 2015 marginally grew its top line from Rs 3.84 billion to Rs 3.85 billion on a year on year (YoY) basis, its bottom line grew markedly from Rs 315.8 million to Rs 441.41 million.
This was mainly possible by reducing its sales cost from Rs 2.95 billion to Rs two billion; administrative expenses from Rs 248.12 million to Rs 223.19 million and finance costs from Rs 34.25 million to Rs 20.83 million, respectively.
The company which is controlled by the Rajiyah family, Dr. S.R. and Mrs. I.R., is largely in the food business, with the prime concentration being on coconut related food products.
The company's voting shares in the 2Q ended 30 September, 2015 closed at Rs 28.80 a share, down 27.27% (Rs 10.80) YoY over its commensurate close in the same period of last year, which was Rs 39.60 a Meanwhile, its NV share in the review period, closed, down Rs 3.50 a share (12.73%) to Rs 24 a share, compared to its close of Rs 27.50 per NV share as at 30 September, 2014.
Nonetheless, the company in a stock exchange filing made on Monday said that the project would kick start in the latter part of next year.
It said that the delay was due to obtaining BoI approval and the discovery of a sewage line at the proposed development site.
When this reporter asked a representative from the secretaries to the company, namely Mrs. S.S.W. Senanayake, director, Renuka Enterprises (Pvt.) Ltd., whether the property in question was their own property? She replied in the affirmative.
She, however was unaware what the details of this investment would be.
When asked as to why, prior to the rights issue, the company didn't get BoI approval or check whether there was a sewer line running in or through the property? She asked to level those questions to the directors.
The company is controlled by the Rajiyah family, Dr. S.R. and Mrs. I.R., and is largely in the food business, with the prime concentration being on coconut related food products.
However, neither of the two was immediately available for comment.
Nevertheless, the company's secretaries in their letter to the Colombo Stock Exchange had however said that the sewage pipe has been relocated (it was done last month), while BoI approval for the project was finally obtained in August 2015.
Upon commercial operations, the project would enjoy an eight year tax holiday, the secretaries said.
Meanwhile, in the rights issue held by the company late last year, it was able to raise a sum of Rs 1.03 billion.
The issue which was oversubscribed, comprised the provision of 44.52 million new voting shares at Rs 21 each and another 6.43 million non voting (NV) shares at an issue price of Rs 15 each. The ratios of both of those issuances comprised on the basis of 'one for one' each. These new shares were listed a year ago on 17 December, 2014.
The company has since made one dividend announcement/payment, ie of 35 cents a share, both voting and NV (announced on 6 August, 2015), with payment to have had been made on 30 September, 2015.
Though the company in the second quarter (2Q) ended 30 September, 2015 marginally grew its top line from Rs 3.84 billion to Rs 3.85 billion on a year on year (YoY) basis, its bottom line grew markedly from Rs 315.8 million to Rs 441.41 million.
This was mainly possible by reducing its sales cost from Rs 2.95 billion to Rs two billion; administrative expenses from Rs 248.12 million to Rs 223.19 million and finance costs from Rs 34.25 million to Rs 20.83 million, respectively.
The company which is controlled by the Rajiyah family, Dr. S.R. and Mrs. I.R., is largely in the food business, with the prime concentration being on coconut related food products.
The company's voting shares in the 2Q ended 30 September, 2015 closed at Rs 28.80 a share, down 27.27% (Rs 10.80) YoY over its commensurate close in the same period of last year, which was Rs 39.60 a Meanwhile, its NV share in the review period, closed, down Rs 3.50 a share (12.73%) to Rs 24 a share, compared to its close of Rs 27.50 per NV share as at 30 September, 2014.
(PGA)
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