Swisstek Aluminium raises over Rs. 800 m via Rights for expansion, reduces debt

Thursday, 3 April 2025 05:27 - - {{hitsCtrl.values.hits}}

Swisstek Aluminium Ltd., a subsidiary of Swisstek (Ceylon) PLC, has so far raised over Rs. 800 million via an ongoing Rights Issue to capacity expansion and to reduce gearing levels.

The Rights Issue is on the basis of 16 shares for every 29, held at Rs. 11 per share, and aims to raise Rs. 849.7 million.

Swisstek (Ceylon) PLC holds 122.34 million shares or 87.379% stake in the subsidiary.

Swisstek (Ceylon) PLC was provisionally allotted 67,498,246 Rights shares, with the right of renunciation.

Considering the cash flow forecasts, Swisstek (Ceylon) PLC accepted the Rights in respect of 22,727,272 shares only, and invested Rs. 250 million in 22,727,272 ordinary shares of Swisstek Aluminium Ltd. on

28 March.

The remaining rights entitlement of Swisstek (Ceylon) PLC was offered to its immediate parent, related companies, and holding company of the immediate parent, and all of them having declined, the remaining rights entitlement was offered to and renounced in favour of the ultimate parent entity, Vallibel One PLC.

As of 28 March, Swisstek Aluminium Ltd. received subscription amounting to Rs. 807 million in respect of 73,365,266 shares, and as per the terms of the Rights Issue, 73,365,266 shares were allotted by the subsidiary, thereby increasing its Stated Capital to Rs. 1.409 billion represented by 213,376,121 shares.

Pursuant thereto, Swisstek (Ceylon) PLC’s holding in Swisstek Aluminium Ltd. is reduced to 67.987% based on subscription received as of 31 March. “If the remaining minority shareholders of Swisstek Aluminium Ltd. accept their Rights, Swisstek (Ceylon) PLC’s holding will be further reduced to 66.772%,” the latter said in a disclosure to the Colombo Stock Exchange (CSE).

Swisstek Aluminium’s production capacity by end of FY24 was 8,400 tons and sold quantity was 4,221 tons.

Lanka Tiles PLC holds 47.8% stake in Swisstek (Ceylon) PLC, along with Lanka Walltiles PLC (11.47%) and Royal Ceramics Lanka PLC (6.8%).

Swisstek Aluminium is one of the leading commercial and industrial aluminium extrusion profile manufacturers in Sri Lanka. In 2010, Swisstek (Ceylon) PLC acquired Ceykor Aluminium Industries Ltd., expanding its operations to include the manufacture and sale of aluminium extrusions.

In 2022, Swisstek Aluminium became the No. 1 aluminium extrusions supplier in Sri Lanka.

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