Kotagala to raise Rs. 762 m via Rights

Monday, 26 May 2025 05:08 - - {{hitsCtrl.values.hits}}

Kotagala Plantations PLC is to raise Rs. 761.6 million via the issuance of Rights to part settle debt and fund working capital.

Its Board last week resolved to issue 84,628,125 ordinary shares at a price of Rs. 9 per share by way of a Rights Issue in the proportion of one new ordinary share for every four existing issued ordinary shares held, subject to approval by the shareholders. The Board said in their opinion, the consideration for which the shares are to be issued is fair and reasonable to the entity and all existing shareholders.

The proceeds from the Rights Issue will be utilised for the following purposes: to settle related party debts; to repay broker borrowings, and for future working capital requirements.

Last week, the Kotagala share price closed at Rs. 10.60 and the net asset value per share as at 31 December 2024 was Rs. 5.67.

Consolidated Tea Plantations Ltd., holds 54.3% stake and Senthilverl Holdings 3%.

Kotagala’s percentage of shares held by the public as at 31 December 2024 was 40.13% and the number of public shareholders is 16,130.