Tuesday Feb 17, 2026
Tuesday Feb 17, 2026
Tuesday, 17 February 2026 03:40 - - {{hitsCtrl.values.hits}}
Ceylon Land and Equity PLC has announced its plans for the proceeds raised from the proposed 2-for-1 Rights Issue to raise Rs. 4.3 billion at Rs. 7 per share, with proceeds earmarked for debt reduction and strategic investments in property and portfolio management.
In a circular to shareholders dated 12 February 2026, the company said it will issue 614,156,734 Ordinary Voting Shares in the proportion of two new shares for every one existing share, subject to shareholder approval at an Extraordinary General Meeting.
Of the total proceeds, Rs. 1.7 billion will be utilised to settle short-term borrowings, Rs. 750 million owed to Hatton National Bank PLC and Rs. 950 million in intercompany loans, along with Rs. 39.7 million in related interest expenses. The company said no security has been pledged against the loans.
A further Rs. 1.75 billion will be invested in Galle Face Properties Ltd., equivalent to 50% of its Ordinary Voting Shares, at Rs. 17.50 per share based on its Net Asset Value as at 31 March 2025. The investment relates to the Galle Face Icon mixed development project in Colombo 03, with commercial occupation expected around 20 months from April 2026.
Ceylon Land will also invest Rs. 702 million in The Cargo Boat Investment Company Ltd., under its Rights Issue at Rs. 1,300 per share. An additional Rs. 70 million has been allocated for future listed equity investments, while Rs. 37.4 million is set aside for Rights Issue expenses.
The record date is 5 March 2026. The issue is not underwritten, though subsidiaries of Renuka Holdings PLC, the majority shareholders, have indicated their intention to take up their full entitlement.
On Monday afternoon, a share of Ceylon Land was trading Rs. 3.80 up at Rs. 25.40. The company reported net assets of Rs. 14.95 per share as of end-December 2025.
Top shareholders were Galle Face Properties (33.42%), Almas Holdings (18.67%) and Renuka Enterprises (11.73%).
