India’s Durga Infra raises stake in Hatton Plantations to 12.5% following Rs.262mn share purchase

Hatton Plantations PLC this week saw its parent company Lotus Renewable Energy (Private) Limited sell over 10.24 million of its shares to Durga Infra (Pvt.) Ltd. 

The transaction, which took place on May 06, 2026, involved 10,245,384 shares changing hands, at a price of Rs.25.60 per share. This translates to a total deal value of approximately Rs.262.28 million. 

The divested shares represent 4.33 percent of the issued ordinary shares of the regional plantation company. Following the completion of this transaction, Durga Infra has successfully increased its total holding in Hatton Plantations to 12.50 percent. 

The transaction comes against the backdrop of Hatton Plantations’ recent financial performance for the nine months ended December 31, 2025. During this period, the group reported a 5 percent topline growth, with revenue reaching Rs.5.81 billion, compared to Rs.5.54 billion in the corresponding period of the previous year. 

However, the group’s profit for the period saw a contraction of 17 percent, settling at Rs.499.38 million, down from Rs.601.13 million. This profitability dip was primarily driven by an 8 percent increase in the cost of sales, which rose to Rs.4.87 billion and a notable surge in finance expenses.

This recent share transfer highlights a continuing strategic realignment by Lotus Renewable Energy, which has been steadily unwinding its controlling position in Hatton Plantations over the past year. 

In March 2025, the parent company held a dominant 75.65 percent stake in the plantation sector firm. This position was reduced to 70.65 percent by September 2025 and further decreased to 62.48 percent by end-December 2025. 

With this latest 4.33 percent divestment, Lotus Renewable Energy’s controlling interest dilutes further to approximately 58.15 percent.

Conversely, Durga Infra has demonstrated a sustained appetite for accumulating Hatton Plantations stock. While absent from the top 20 shareholders list at end-September 2025, the company aggressively built an 8.17 percent stake by December 31, 2025, making it the third-largest shareholder at the time. 

By absorbing the latest block of shares, Durga Infra has cemented its position as a highly influential minority shareholder, with a 12.50 percent holding. This divergence in holding patterns suggests Lotus Renewable may be freeing up capital for its core energy ventures, while Durga Infra sees long-term value in Sri Lanka’s agricultural and plantation space.

Hatton Plantations operates as a subsidiary of Lotus Renewable Energy, which itself a vital component of the multinational G&G Group of Companies. The group’s investments and strategic directions in Sri Lanka are driven by businessman and investor Gary Seaton, who serves as Chairman of the board.  

(NF)