Vallibel Finance boosts high growth trajectory with Rs. 2.12 b Rights Issue

Managing Director Jayantha Rangamuwa speaks to the media yesterday – Pic by Upul Abayasekara

• Issue, attractively priced and on-par with NAV of 
• Rs. 72 per share, gets nod from shareholders at EGM; share price yesterday trades between Rs. 99 and Rs. 100 levels
• Managing Director Jayantha Rangamuwa says Rights Issue reinforces financial foundation, enhances regulatory capital buffers, and positions company to capitalise on emerging opportunities
• Sets sights at crossing Rs. 200 b asset base and 100-branch mark, including presence in North in new financial year; expanded to Eastern Province recently with three branches
• Rangamuwa says “success is not accidental but purposeful”

The fifth largest in the industry, Vallibel Finance PLC yesterday announced a Rs. 2.12 billion attractively-priced Rights Issue in a strategic initiative aimed at strengthening Tier I capital and further supporting its impressive growth trajectory.

The Rights will be on the basis of one new ordinary voting share for every eight held (issuing 29,431,675 shares) at Rs. 72 per share. The current stated capital is Rs. 1.325 billion represented by 235,453,400 shares.

The Vallibel Finance Board approved the move in mid-January. The issue price is almost equal to Vallibel Finance’s net asset value per share of Rs. 72.56 as at end-December 2025.

On Wednesday, Vallibel Finance shares traded at Rs. 100. In the quarter ended December 2025, the share price traded at a high of Rs. 128 and a low of Rs. 95 before closing at Rs. 104.50. The share’s Ex-Rights (XR) date is today (27). 

Shareholders at an Extraordinary General Meeting (EGM) yesterday approved the Rights Issue.

Business leader Dhammika Perera is the majority shareholder via Vallibel Investments Ltd., (51.44% stake), along with a personal stake of 21.43%. The public holding of Vallibel Finance was 21.27% held by 5,937 shareholders.

Apart from attractive pricing, shareholders have hitherto benefitted from capital appreciation and dividends, according to the company. In the past decade, Vallibel Finance has paid dividends for eight years ranging from a high of Rs. 6.50 per share and a low of Rs. 1.

Vallibel Finance PLC Managing Director Jayantha Rangamuwa said the capital raise forms part of a broader strategy to reinforce its financial foundation, enhance regulatory capital buffers, and position the company to capitalise on emerging opportunities within the evolving financial services landscape. Strengthening Tier I capital is expected to support increased lending capacity, improve resilience, and enable sustained business expansion.

The Company’s Tier 1 Capital to Risk-Weighted Assets ratio is at 10.77% as at end-December 2025, down from 14.87% a year ago. The minimum ratio is 10%.

The latest Rights Issue is the second for Vallibel Finance, with the first being in 2018 raising Rs. 1 billion.

Rangamuwa told the media yesterday that in a short span of 19 years, Vallibel Finance has emerged as the fourth largest by volume and fifth largest in terms of Balance Sheet. In 2024, it became the fastest finance company to surpass the Rs. 100 billion mark. Plans are underway to surpass the Rs. 200 billion mark in the new financial year of 26/27, having ended FY26 at Rs. 181.7 billion. Vallibel Finance holds an ‘A’ credit rating along with an ‘A’ brand rating.

Rangamuwa said that strategic priorities for the next three years include expanding countrywide presence and service offering. Recently, Vallibel Finance ventured into the Eastern Province, opening three branches, bringing the total to 87. In FY27 1Q, the company hopes to set up five branches in the Northern Province.

“We have risen to be within the Top 5 sans a presence in the North and East, and this explains the enormous potential and prospect for Vallibel Finance with the foray into these two provinces in FY27,” explained Rangamuwa, who joined the vompany when it began in 2007.

Another medium-term strategy is to drive digital transformation to further improve efficiency and customer experience. A part of the proceeds will be used for digital transformation.

In the past four years (FY23 to FY26), Vallibel Finance has seen its asset base grow by 116% to Rs. 181.7 billion, fixed deposits by 62% to Rs. 83.8 billion, and gold loans by 134% to Rs. 34 billion. Pre-tax profit in FY25 was Rs. 5.5 billion as against Rs. 1.9 billion in FY18. In the first nine month of FY26, the figure was Rs. 4.24 billion, up 42% from the corresponding period of last year.

Rangamuwa said Vallibel Finance’s impressive performance, achieved amidst multiple external challenges, was a testament of the company’s resilience and stability. “Our success is not accidental but purposeful,” he said.

It was emphasised that the many milestones achieved underscored the company’s consistent performance and its ability to scale efficiently in a competitive market environment.

With over 2,200 employees and planned future strategies, Vallibel Finance said it is well-positioned to enhance deposit mobilisation, lending, and deeper customer relationships, reinforcing its reputation as a trusted and accessible financial services provider. It is also poised to leverage new growth opportunities while maintaining resilience in a changing economic environment. 

The company remains committed to delivering sustainable value to its stakeholders and contributing meaningfully to the advancement of Sri Lanka’s financial sector.