Lankem Developments to raise Rs. 600 m via Rights

Monday, 18 November 2024 04:22 - - {{hitsCtrl.values.hits}}

Lankem Developments PLC has announced a Rs. 600 million fund raising exercise via a Rights Issue.

The proportion is 1 new ordinary share for every 3 ordinary shares held at Rs. 15 each.

The move will see issuance of 40 million ordinary shares. Lankem Developments’ current stated capital is Rs. 2.484 billion represented by 120,000,000 ordinary shares.

Funds raised will be utilised to settle related party dues; for further investment in subsidiary and future working capital requirements.

As at 30 September 2024, loans due to related parties amounted to Rs. 508 million out of Rs. 766 million current liabilities.

Net assets per share of Lankem Developments is Rs. 11.84 as at 30 September 2024 down from Rs. 12.13 as at end of FY24. Last week the Company’s share price closed at Rs. 18.20.

Lankem Developments consolidated after tax profit in the 1H of FY25 grew by 324% to Rs. 713.5 million and in 2Q by 305% to Rs. 376.3 million.

Consolidated Tea Plantations Ltd., holds 49.80% stake in Lankem Developments. The public float is 42.96% held by 3,340 shareholders.