Vidullanka announces dividend distribution and a rights issue of non-voting shares

Vidullanka PLC announced an interim dividend distribution of 10 cents per share and a rights issue of non-voting shares on disclosures made on the Colombo Stock Exchange. 

Accordingly, the company is set to distribute a sum of Rs. 83.7 m to the shareholders and proposed to raise Rs. 250.2 m equity share capital by way of non-voting shares, subject to approval from the Colombo Stock Exchange.

The proposed issue of non-voting shares is priced at a consideration of Rs. 3.50 per share, a 41% discount from the one-month volume weighted average market price of the ordinary share of the company.

The company reported a Profit After Tax of Rs. 196 m for the first six months of the financial year compared to Rs. 52 m for the corresponding period and Rs. 362 m for the financial year ending 2019/20. 

Having a strong presence in renewable power generation with an installed capacity of 36.7MW, comprising 32.7MW in hydro power generation, 3.3MW in dendro power generation, the company last week announced its entry into the solar power generation, through the commissioning of a 515kWp rooftop solar powerplant in the premises of Diamond Cutters Ltd. in Panadura Industrial Zone. 

In July 2020, the company commissioned its second hydro power plant in Uganda, Bukinda SHPP with an installed capacity of 6.5MW in Kibale district, amidst the challenges posed by Covid-19.

The proposed issue of non-voting shares aims to facilitate the company growing its foothold in solar power generation through investments in both rooftop solar and ground mounted solar power projects, the company further disclosed to the market.

Solar power has been the fastest growing renewable energy technology with global scale adoption of the technology and scientific advancements helping to bring down the capital cost substantially over the past decade coupled up with improved power efficiency. On par with the global trend, Sri Lanka also rapidly adopting solar power into its generation mix with private sector investments.  Vidullanka PLC, with its investments in diverse renewable energy assets, both technology wise as well as geographically, is well positioned to take up the emerging opportunities amidst the challenges in the fields of renewable energy and related industries.