- Banks on govt.’s plans for rapid infrastructure development
- Announces plans to raise Rs.150 mn via rights issue
Industrial Asphalts (Ceylon) PLC (IAC), the country’s pioneer in the bitumen business has embarked on an ambitious expansion plan banking on the government’s plans for rapid infrastructure development.
The company foresees rapid investments in infrastructure on the back of government’s development initiatives. Infrastructure sector in general and roads sector in specific will be experiencing significantly higher growth rates during the years 2021 to 2025.
“The decline in the economy experienced during 2015 to 2019 is now being met with progressive policies, which are reflected in the infrastructure development projects planned and executed currently,” the company said in a statement.
IAC is currently going through an expansionary process to increase its operating capability by strengthening the balance sheet.
The significant increase in such projects has motivated the IAC board to announce the rights issue of Rs.150 million with an objective of strengthening its balance sheet.
A stronger balance sheet would enable IAC to capture the emerging opportunities in both road construction space and protective coatings segment.
The rights issue is well priced at 20 cents per share enabling wide range of investors to take the opportunity to invest in the company’s growth.
Meanwhile, from 2015, the company embarked on a process of registering its iconic brands with the National Intellectual Property Office.
Today, the company has successfully registered all its brands under multiple classes to get complete legal protection from various infringements of the brands.
IAC is currently expanding its product offering under its brands to include nano-technology in addition to polymer and acrylic products.
The complete range of product offering under its existing brands along with a new product promotion campaign are expected to recapture its market share in the protective coatings space in the paints and coatings industry.
IAC is leveraging on the existing strength of its portfolio of brands to expand the market through new and innovative uses for its productions.