Renuka Holding to raise Rs. 1.031 b from rights issue
View(s):Renuka Holding PLC (RHL) has announced plans to raise Rs. 1.031 billion via a Rights Issue closing on December 16 through the stock market’s online platform to carry out debt settlements and to fund future investments into group subsidiaries according to a circular issued to its shareholders.
According to the circular, the new Ordinary Voting Shares will be issued at a price of Rs. 14 amounting to Rs. 934,863,56. The new Ordinary Non-Voting Shares will be issued at a price of Rs. 10 amounting Rs. 96,426,220. The total proceeds expected to be raised through the Rights Issue is Rs. 1,031,289,78.
Renuka Holdings PLC ordinary share price closed as at December 7 as at Rs. 15.10 and its net asset value per share as at September 30 2020 was Rs. 62.87, the company said in media release.
For the six months ending September 2020, the company recorded a turnover of Rs. 4.2 billion, a net profit of Rs. 208 million and equity attributable to shareholders of Rs. 6.4 billion.
The group consists of two main verticals – Food and Beverage, and Property and Investment. Renuka Holdings’ interest in this sector is owned through Renuka Foods PLC, which consists of: Agribusiness – Renuka Agri Foods PLC and Renuka Agri Organics Ltd; Sri Lanka’s leading coconut based food and beverage manufacturers, Renuka Teas Ceylon Ltd – a speciality organic and superfood tea enterprise and Kandy Plantations Ltd, Sri Lanka’s largest owner of organic certified coconut lands.
The FMCG business is led by Richlife Dairies Ltd; which is within the top five dairy companies, and Shaw Wallace Ceylon; the owner of the leading brands of canned fish, snacks, among other brands.