Galle Face Capital plans Rs. 2 b one-for-one Rights Issue to cut short-term debt

Monday, 5 October 2026 05:46 - - {{hitsCtrl.values.hits}}

122.4 m new shares at Rs. 16 each, doubling share count
Issue amounts to nearly 2.7 times current stated capital of Rs. 733 m

Galle Face Capital Partners PLC plans to raise Rs. 1.96 billion through a Rights Issue to settle short-term bank and intercompany borrowings and finance future investments, the company said on Friday.

The Board, at a meeting on 2 October, resolved to issue 122,388,394 new ordinary voting shares at Rs. 16 each, in the ratio of one new share for every share held. The issue will double the number of shares in issue to 244,776,788.

The amount compares with the company’s current stated capital of Rs. 732.81 million, the total capital contributed by shareholders to date.

The Board said that, in its opinion, the issue price was fair and reasonable to the company and all existing shareholders.

The Rights Issue is subject to the Colombo Stock Exchange (CSE) approving in principle the issue and listing of the new shares, and to shareholder approval at an Extraordinary General Meeting (EGM).

The company’s share price ended down Rs. 0.50 on Friday at Rs. 18.40. The company reported net assets per share of Rs. 24.56 as at end-June 2026. Ceylon Land & Equity was the top shareholder with a 30.04% stake, followed by Renuka Investments’ 23.88% and Almas Holdings’ 13.94%.