Renuka Holdings Rs. 1 b Rights issue oversubscribed

Wednesday, 3 December 2014 00:00 - - {{hitsCtrl.values.hits}}

Renuka Holdings PLC’s Issue for Rs. 1.03 billion closed on 28 November after being oversubscribed, attracting applications over and above the number offered under the rights.

The company offered a total of 44,517,313 ordinary voting shares at Rs. 21 each and 6,428,415 million ordinary non-voting shares at Rs. 15 in order to fund its property development project – The Renuka Tower – a modern 28 storey tower providing ‘A’ grade office facilities built on company owned land at Galle Face Terrace and Sri Uttrananda Mawatha, Colombo 03. Executive Director Shamindra Rajiyah said, “The overwhelming response to the Rights Issue demonstrates the confidence and trust placed on Renuka by our shareholders, which enables us to forge ahead with our investment plans. We are proud of our heritage as a truly Sri Lankan company, adding value to our resources and contributing to the country’s development in our own way.” The Renuka Holdings PLC Group is Sri Lanka’s leading exporter of value-added coconut products and has significantly invested in its food and beverage sector over the last few years. Through its subsidiary Shaw Wallace Ceylon Ltd, the Group is the largest importer of Sri Lanka’s two leading brands of canned fish, Captain and Plaza, which provided the right platform for it to invest in a fish processing plant, which commenced operations recently. Similarly the group’s subsidiary Richlife Dairies Ltd is one of the top three liquid milk manufacturers locally. Among the group’s listed companies are Renuka Foods PLC and Renuka Agri Foods PLC, dedicated to the food and beverage and agriculture sector. Furthermore the group represents two Fortune 500 companies through its automotive joint venture – McShaw Automotive Ltd – and enjoys a leading position in the lubricant market in Sri Lanka. As per its last annual report 2013/14 the Group had revenue of Rs. 7.2 billion, from over 71,000 outlets in Sri Lanka and 61 export markets; while directly employing 1420 and indirectly over 7000 people. Post-Rights Issue the total equity of Renuka Holdings PLC has increased to Rs. 6.3 billion and having a post rights net asset value of Rs. 40 per share. The Company’s Board of Directors comprises I.R. Rajiyah, Dr. S.R. Rajiyah, C.J. De. S. Amaratunge, S.V. Rajiyah, L.M. Abeywickrama, M.S. Dominic, T.K. Bandaranayake, J.M. Swaminathan and A.L. Rajiyah.