Ceylon Land & Equity rights issue is set to raise fresh capital to strengthen the company’s financial position and expand investment activities. The fundraising initiative will support debt settlement and property development expansion plans.
Ceylon Land & Equity rights issue aims to fund property and debt restructuring
Ceylon Land & Equity rights issue has been announced as part of the company’s strategy to strengthen its capital structure and finance new investment opportunities. Ceylon Land & Equity PLC plans to raise approximately Rs. 4.3 billion through the issuance of new ordinary voting shares, subject to shareholder and regulatory approvals.
The Board of Directors approved the capital-raising initiative at a meeting held on 31 January, proposing to issue 614,156,734 new ordinary voting shares at a price of Rs. 7 per share. The fundraising exercise will be conducted on a two-for-one basis, allowing shareholders to subscribe to two new shares for every existing ordinary voting share held.
The company stated that the issue price has been evaluated carefully and considered fair and reasonable for both the organisation and its existing shareholders. The rights offering provides shareholders with an opportunity to maintain their ownership percentage while supporting the company’s expansion strategy.
Proceeds from the Ceylon Land & Equity rights issue will primarily be used to strengthen the company’s balance sheet. The company plans to utilise the funds to settle short-term bank loans and repay short-term inter-company borrowings. In addition, a portion of the funds will be directed toward investment in property development projects and portfolio management activities, which remain core segments of the company’s long-term growth strategy.
As of 31 January, Ceylon Land & Equity reported a stated capital of approximately Rs. 2.07 billion. The proposed rights offering represents a significant capital infusion that is expected to enhance liquidity and provide greater flexibility for future investments. The rights issue remains subject to in-principle approval from the Colombo Stock Exchange for the issue and listing of shares, along with shareholder approval through an Extraordinary General Meeting.
Market activity surrounding the company’s shares has reflected strong investor interest. The share price closed at Rs. 15.20, gaining Rs. 2.80 in the latest trading session, with more than 37.3 million shares traded, generating a turnover of Rs. 536.5 million. Analysts observe that such trading momentum indicates active market participation and investor confidence in the company’s strategic direction.
Financial data released by the company shows that net assets stood at Rs. 14.95 per share as of end-December 2025. Public shareholding accounted for 49.96 percent of voting shares, representing over 3,000 shareholders. The company’s major shareholders include Galle Face Properties, Almas Holdings, Renuka Enterprises, and Cargo Boat Investment Company, which collectively hold a significant stake in the business.
In addition to the capital-raising initiative, Ceylon Land & Equity has also announced a substantial investment in Shaw Wallace & Hedges Ltd., an unlisted company. The company’s Board recently approved a Rs. 1.7 billion investment to increase its shareholding in the firm. Under the transaction, Ceylon Land & Equity will subscribe to over 86 million voting shares at Rs. 17 per share, amounting to approximately Rs. 1.47 billion.
The company will also invest Rs. 236.5 million to acquire more than 21 million non-voting shares at Rs. 11 per share. Following completion of the transaction, Ceylon Land & Equity’s shareholding in Shaw Wallace & Hedges is expected to increase significantly, reaching 49.2 percent of the issued ordinary shares. The ownership structure will include approximately 43.6 percent of voting shares and full ownership of non-voting shares.
The company confirmed that the Shaw Wallace & Hedges investment will be financed through a combination of internal funds, temporary bank financing, and group borrowings. Analysts believe that increasing its stake in the company aligns with Ceylon Land & Equity’s long-term portfolio diversification strategy and strengthens its presence in related business sectors.
The Ceylon Land & Equity rights issue reflects broader trends within Sri Lanka’s corporate sector, where companies are increasingly turning to equity fundraising to support growth initiatives and manage financial restructuring. Strengthening capital positions enables companies to pursue new investment opportunities while maintaining financial stability in a competitive business environment.
Industry observers note that rights issues provide an efficient method of raising funds while allowing existing shareholders to participate in corporate expansion. Successful execution of such initiatives often improves investor confidence and enhances long-term shareholder value.
Overall, the Ceylon Land & Equity rights issue represents a strategic effort to improve financial flexibility, support property sector investments, and expand portfolio holdings. The company’s combined focus on capital strengthening and strategic acquisitions highlights its commitment to sustainable business growth and shareholder value creation.