Renuka Holdings to raise Rs. 1 b via Rights Issue

Renuka Holdings PLC has announced plans to raise Rs. 1 billion via a Rights Issue to partly settle debt and fund future investments.

The Board has resolved to issue 66.77 million voting shares at Rs. 14 each and 9.64 million non-voting shares at Rs. 10. The basis will be three new shares for every four held.

Rs. 934.8 million will be raised via voting share issue and Rs. 96.4 million via the non-voting issue. 

The voting share closed at Rs. 17.60 yesterday. The Company’s Net Asset Value Per share was Rs. 55.39 as at 30 June. The current stated capital of the Company is Rs. 1.198 billion.

Renuka Holdings said proceeds of the issue will be used to carry out debt settlement undertaken by the Company and to fund future investments in the Company’s subsidiaries and/or sub-subsidiaries. 

The Rights Issue is subject to shareholder and regulatory approval. 

Renuka Group Limited owns 46.27% of voting shares and related party Dr. S.R. Rajiyah and Mrs. Rajiyah owns 19.54%, while Dr. Sena Yaddehige owns 7.24% and EPF owns 3.27%.

The percentage of shares held by the public as at 30 June were Voting 32.99% and Non-Voting 94.14%. The number of shareholders representing the public holding as at 30 June was 2,051-Voting and 1,019-Non-Voting.