Beruwala Resorts plans Rs. 398 m Rights issue to fund refurbishment

Friday, 24 July 2026 00:04 - - {{hitsCtrl.values.hits}}

Beruwala Resorts PLC has proposed a Rs. 398 million rights issue to raise funds for the refurbishment of The Palms Beruwala hotel and meet working capital requirements.

The Board of Directors had approved the issue of 318,429,225 ordinary shares at Rs. 1.25 per share, on the basis of five new shares for every 11 existing ordinary shares held by shareholders. The share ended 10 cents down yesterday at Rs. 2.90.

The company reported a 29.83% public float. As of end-March 2026, Colombo Fort Hotels Ltd was the top shareholder with a 66.25% stake, followed by SA and PT Cooray 2.14%, Financial Trust Ltd. 2.03% and L.P. Hapangama 1.27% and KGL Wijayathilake 0.74%.

The Board said the consideration at which the shares would be issued was fair and reasonable to the company and existing shareholders.

The proceeds from the rights issue will be used to complete refurbishment work at The Palms Beruwala and support the company’s working capital requirements.

The proposed issue is subject to in-principle approval from the Colombo Stock Exchange, listing approval for the new shares and shareholder approval at an Extraordinary General Meeting.

Beruwala Resorts has a stated capital of Rs. 120 million.