C M Holdings proposes 10-for-1 share subdivision

C M Holdings PLC has announced a proposal for a 10-for-one subdivision of its ordinary shares, a move aimed at increasing the liquidity of its shares in the market, according to a stock filing with the Colombo Stock Exchange (CSE).

The board of directors passed a resolution on July 4, 2025, to recommend the subdivision to its shareholders, which will be subject to approval at an upcoming Extraordinary General Meeting.

If approved, each of the existing 15,200,000 issued ordinary shares will be subdivided into 10 shares, increasing the total number of issued shares to 152,000,000. The company noted that this corporate action would not alter its stated capital, which stands at Rs.288.39 million. The proposed subdivision is permissible under Article 10 (iii) of the company’s Articles of Association.

This announcement follows the company’s 113th Annual General Meeting held virtually on June 30, 2025, where all resolutions, including a Special Resolution to amend the Articles of Association regarding the minimum number of independent directors, were passed.

Established in 1909, C M Holdings is a prominent investment holding company with primary business interests in the motor, property and investment sectors. The Colombo Fort Land & Building PLC is the ultimate parent company, holding a 63.49 percent stake in C M Holdings.

The company has demonstrated a robust financial performance in the fiscal year ended March 31, 2025. The group reported a significant 152 percent increase in pre-tax profit, reaching Rs.613 million, up from Rs.243 million in the previous year. This surge was largely fuelled by exceptional gains from its listed equity investments and a notable rise in the dividend income. Group revenue for the year rose by 15 percent to Rs.352 million.

Key financial indicators show positive momentum. The group’s basic earnings per share (EPS) substantially increased to Rs.38.92, from Rs.13.69 in the prior year, while the company’s EPS was Rs.7.05. Net asset value (NAV) per share for the group improved to Rs.334, from Rs.236 in the previous year and the company’s NAV per share stood at Rs.187. The group maintained a conservative financial stance with a debt-to-equity ratio of 18 percent.

As of March 31, 2025, The Colombo Fort Land and Building remains the largest shareholder, with a 63.49 percent stake. Other major institutional shareholders include Sri Lanka Insurance Corporation Ltd-Life Fund (2.58 percent), Pan Asia Banking Corporation PLC/Lankem Ceylon PLC (2.18 percent) and Colombo Investment Trust PLC (2.18 percent).

The public shareholding in the company stood at 28.90 percent as of March 31, 2025, held by 953 shareholders. This meets the CSE’s minimum public holding requirements under Option 5, with a float-adjusted market capitalisation of Rs.724.81 million.