Rs. 600 m rights issue of Lankem Developments snapped up

Tuesday, 22 April 2025 03:25 - - {{hitsCtrl.values.hits}}

The Rs. 600 million worth rights issue of Lankem Developments PLC has been oversubscribed.

The company said total subscription received amounted to Rs. 725.5 million, inclusive of additional shares applied for.

The original issue was 40 million shares (one new share for every three held) at Rs. 15 each. The company’s share price yesterday closed at Rs. 18.80, up by Rs. 1.10 or 6.2%.

Funds raised are to be used to settle related party dues and further investment in subsidiary companies, as well as future working capital requirements.

The major shareholders of Lankem Developments PLC include Consolidated Tea Plantations Ltd., (47.57%), Senthilverl Holdings (11.22%), Sri Lanka Insurance Corporation General Fund (3.4%), Lankem Ceylon PLC (2%), and Union Investments Ltd., (2%).

The public float of the company is 44.28% held by 3,479 shareholders as at 31 December 2024.