Thursday Apr 23, 2026
Thursday Apr 23, 2026
Thursday, 23 April 2026 05:55 - - {{hitsCtrl.values.hits}}
Janashakthi Ltd., (JXG) yesterday announced the basis of allotment for its Rs. 5 billion Initial Public Offering (IPO), which was oversubscribed by more than three times on its opening day on 9 April.
The issue of 500 million new ordinary voting shares drew 20,359 valid applications for 1,515,524,200 shares, translating into a total demand of Rs. 15.16 billion against an offer size of Rs. 5 billion.
Investor participation was led by the retail segment, which accounted for 16,268 applications seeking 165,816,400 shares. The non-retail category received 3,869 applications for 1,193,669,600 shares, while unit trusts and employees accounted for eight and 214 applications, respectively.
In terms of funding channels, over 4,000 applications for approximately 615 million shares worth over Rs. 6.1 billion were received via bank drafts and cheques. A further 16,357 applications for over 479 million shares worth Rs. 4.8 billion came through RTGS/SPIPS/CEFTS transfers, while 38 applications for over 422 million shares valued at Rs. 4.22 billion were submitted via bank guarantees.
The final allotment confirms full subscription across all categories, with allocations capped at the offered 500 million shares.
Retail investors, allocated 75 million shares, received 75,002,749 shares. Under the allotment structure, applications up to 4,000 shares were met in full, while quantities above this threshold were scaled down to 17.5%.
The non-retail segment, allocated 325 million shares, saw 243,000,000 shares allotted to strategic investors on a preferential basis. Remaining non-preferential applicants were granted a minimum of 4,000 shares and 9.6% of the balance applied above that level, with rounding adjustments applied to the two largest applicants. Total shares allotted in the category amounted to 324,997,251.
Unit trusts, which had an allocation of 50 million shares against applications for 74,700,000 shares, received the full allocation. Applicants were granted a minimum of 500,000 shares and 65% of quantities above that level, with rounding adjustments to the largest applicants.
Employees of the Janashakthi Group were also allocated 50 million shares against demand for 81,338,200 shares. Applications up to 500,000 shares were met in full, with 33.8% allotted on quantities above that threshold, with rounding adjustments applied within the category.
The Board of Directors of JXG said the basis of allotment was determined in line with the prospectus dated 25 March.
For context, Janashakthi Group, which comprises Janashakthi Insurance PLC, First Capital Holdings PLC, and Janashakthi Finance PLC, closed the IPO on the day of opening, reflecting strong investor demand. The offer of 500 million shares at Rs. 10 each represented a 21.7% stake in the company.
An independent valuation by Deloitte Sri Lanka placed the share value at Rs. 15.92, implying a 37.2% discount at the offer price. Proceeds are to be deployed with Rs. 3.5 billion earmarked for expansion across financial services, Rs. 500 million for overseas growth, and Rs. 1 billion for debt reduction.
