Amana Takaful PLC Concludes Rights Issue, Raises Over Rs. 1 Billion, marking a significant milestone for the insurer as it strengthens its capital base and prepares for future growth. The successful fundraising exercise attracted strong shareholder participation, reflecting confidence in the company’s long-term strategy and operational performance.
Amana Takaful PLC Concludes Rights Issue, Raises Over Rs. 1 Billion amid strong shareholder demand
Amana Takaful PLC has successfully completed its Rights Issue, raising more than Rs. 1 billion through the allotment of over 52.8 million new ordinary voting shares at a price of Rs. 19 per share. The offer, which was made exclusively to existing shareholders, received an overwhelming response and was oversubscribed by 68.8%, highlighting robust investor confidence in the company’s future prospects.
The successful completion of the Rights Issue comes amid a period of sustained growth and strategic development for the insurer. Over recent years, Amana Takaful has focused on enhancing its market position through investments in technology, customer service improvements, and product innovation. These efforts have helped the company strengthen its presence across key insurance segments while improving operational efficiency.
A major component of the company’s growth strategy has been its ongoing digital transformation programme. The insurer has introduced a revamped mobile application and streamlined claims processing systems aimed at delivering a more convenient and efficient customer experience. These initiatives have supported business growth while helping the company adapt to changing customer expectations in an increasingly digital environment.
In addition to its technological advancements, Amana Takaful has continued to expand its offerings across motor, medical, and general insurance segments. The company has also gained recognition within the industry, earning several prestigious accolades, including being named among Sri Lanka’s Most Awarded Companies. Such achievements have reinforced its reputation as a growing player within the local insurance sector.
Commenting on the successful capital raising, Siva Karthigun, Chief Executive Officer of Amana Takaful General Insurance, said the strong shareholder response demonstrates confidence in the company’s long-term vision and strategic direction. He noted that the additional capital would strengthen the company’s financial position and support its next phase of growth.
Under the terms of the offer, shareholders were entitled to subscribe for three new shares for every fourteen shares held. The proceeds generated from the issue are expected to play a critical role in supporting future business expansion while ensuring the company remains well-positioned to meet evolving regulatory and accounting requirements.
A key priority for the newly raised capital will be preparing for the implementation of SLFRS 17 and SLFRS 9, two major accounting standards that will significantly impact the insurance and financial services sectors. Strengthening the company’s capital base ahead of these changes is expected to enhance financial resilience and improve readiness for future reporting requirements.
The funds will also contribute towards strengthening Amana Takaful’s Tier I Capital, providing greater financial flexibility to support business growth opportunities within its General Insurance operations. Industry observers note that maintaining a strong capital position is increasingly important as insurers navigate a competitive market environment while investing in technology, innovation, and customer-centric services.
The successful fundraising exercise further demonstrates the confidence shareholders have placed in the company’s strategy, management team, and future outlook. As the company continues to pursue growth opportunities and advance its digital transformation agenda, the strengthened capital base is expected to provide a solid foundation for sustainable expansion.
Asia Securities Advisors (Pvt) Ltd acted as the Consultant Broker to the Rights Issue, supporting the successful execution of the transaction. With fresh capital secured and shareholder backing evident, Amana Takaful appears well-positioned to continue its growth trajectory while creating long-term value for stakeholders.