Taj Samudra Hotel owner to raise Rs. 1.87 b via Rights

Wednesday, 8 July 2026 00:24 - - {{hitsCtrl.values.hits}}

TAL Lanka Hotels PLC, the owner and operator of the iconic Taj Samudra Hotel, has announced plans to raise Rs. 1.87 billion through a Rights issue to strengthen its balance sheet, repay borrowings and fund refurbishment work at its Colombo hotel.

The company’s Board of Directors resolved yesterday to issue 66,836,785 ordinary voting shares through the Rights issue, offering 42 new shares for every 108 existing shares held by shareholders.

The new shares will be issued at Rs. 28 each, with the company expecting to raise a total of Rs. 1,871,429,980 from the issue. The share traded at Rs. 33 yesterday reporting a gain of 60 cents.

The proceeds will be utilised for the repayment or pre-payment of certain loans obtained by the company, financing refurbishment and renovation of its Colombo hotel, settling payments due to vendors and suppliers including overdue operator fees, and meeting general corporate requirements including operational expenses, professional fees and legal costs.

The company currently has a stated capital of Rs. 2.72 billion, comprising 171,866,018 ordinary voting shares. There are 9,606 shareholders inclusive of 82 foreigners. Public holding is 14%.Among major shareholders are TAL Hotels and Resorts Ltd., (62.55%), IHOCO BV (23.4%) and EPF (4%).

The proposed Rights issue remains subject to approval in principle from the Colombo Stock Exchange for the issue and listing of shares, as well as shareholder approval at a General Meeting.