Renuka Holdings’ Rs.1.03 bn rights issue oversubscribed

The company offered of 44.5 million ordinary voting shares at Rs.21 each and 6.4 million ordinary non-voting shares at Rs.15 in order to fund its Rs.3.2 billion property development project, The Renuka Tower, a 28-storey tower providing ‘A’ grade office facilities, built on company-owned land at Galle Face Terrace and Sri Uttrananda Mawatha, Colombo 03.

“The overwhelming response to the rights issue demonstrates the confidence and trust placed on Renuka by our shareholders, which enables us to forge ahead with investment plans. We are proud of our heritage as a truly Sri Lankan company, adding value t o our resources and contributing to the country’s development in our own way,” Renuka Holdings Executive Director Shamindra Rajiyah said.

The Renuka Holdings is Sri Lanka’s leading exporter of valueadded coconut products and has invested significantly in its food and beverage sector over the last few years.Through its subsidiary Shaw Wallace Ceylon Ltd, the Group is the largest importer of Sri Lanka’s two leading brands of canned fish, Captain and Plaza, which provided the right platform for it to invest in a fish processing plant, which commenced operations recently.Similarly the gr o u p ’s subsidiary Richlife Dairies Ltd is one of the top three liquid milk manufacturers in the country.Among t he group’s listed companies are Renuka Foods PLC and Renuka Agri Foods PLC, dedicated to the food and beverage and agriculture sector.

Furthermore, the group represents t wo Fortune 500 companies through its automotive joint venture - McShaw Automotive Ltd, and enjoys a leading position in the lubricant market in Sri Lanka.As per its last annual report 2013/14, the Group had revenue of Rs.7.2 billon, from over 71,000 outlets in Sri Lanka and 61 export markets, while directly employing 1420 and indirectly over 7000 people.Post rights issue, the total equity of Renuka Holdings PLC has increased to Rs.6.3 billion, and having a post rights net asset value of Rs.40 per share.