Tuesday Feb 03, 2026
Tuesday Feb 03, 2026
Tuesday, 3 February 2026 02:09 - - {{hitsCtrl.values.hits}}
Ceylon Land & Equity PLC will issue 614,156,734 new ordinary voting shares at a price of Rs. 7 per share through a Rights Issue, subject to shareholder approval.
The decision was taken by the Board of Directors at a meeting held on 31 January. The Rights Issue will be carried out on the basis of two new ordinary voting shares for every one existing ordinary voting share held.
Based on the issue price, the company is expected to raise approximately Rs. 4.3 billion through the transaction.
The Board has stated that, in its opinion, the consideration for which the shares are proposed to be issued is fair and reasonable to the company and its existing shareholders.
Proceeds from the Rights Issue will be used to settle short-term bank loans, repay short-term inter-company borrowings, and fund investments in property development and portfolio management.
As at 31 January, the stated capital of Ceylon Land & Equity stood at Rs. 2.07 billion.
The Rights Issue remains subject to the Colombo Stock Exchange (CSE) granting in-principle approval for the issue and listing of the shares, as well as shareholder approval at an Extraordinary General Meeting.
Yesterday, the share price of the company closed up Rs. 2.80 at Rs. 15.20 with over 37.3 million shares traded on a turnover of Rs. 536.5 million.
As at end-December 2025, the company reported net assets of Rs. 14.95 per share. The percentage of voting shares held by the public as at 31 December 2025 was 49.96%, representing 3,088 shareholders.
Top shareholders were Galle Face Properties (33.42%), Almas Holdings (22.36%), Renuka Enterprises (11.73%) and Cargo Boat Investment Company (4.88%). The company did not report any loans as of 31 December 2025.
Last week, the company said that its Board had approved an investment of Rs. 1.7 billion to take up its entitlement in the Rights Issue of Shaw Wallace & Hedges Ltd., an unlisted company.
Under the transaction, Ceylon Land & Equity will subscribe to 86.32 million voting shares at a price of Rs. 17 per share, amounting to a consideration of Rs. 1.47 billion. In addition, the company will invest Rs. 236.5 million to acquire 21.5 million non-voting shares at Rs. 11 per share.
The company currently holds 172.64 million voting shares and 43 million non-voting shares in Shaw Wallace & Hedges. Following the proposed investment, its shareholding will increase to 49.2% of the issued ordinary shares of the company.
This holding will comprise 43.6% of the voting shares and 100% of the non-voting shares of Shaw Wallace & Hedges. The company said it would finance the deal via a combination of its own funds, temporary bank financing, and group borrowings.
