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Krishani
Krishani
Oct 05 2026
29Lanka Walltiles PLC (LWL) said it is planning to raise Rs. 5 billion through a Rights Issue to partially settle its bank borrowings and overdue intercompany payables, and will amalgamate its wholly owned subsidiary Vallibel Plantation Management Ltd., with itself once the issue is completed.
The Board, at a meeting on 1 October, resolved to recommend the issue of 128,470,588 new ordinary voting shares at Rs. 39 each, in the ratio of eight new shares for every 17 held.
The issue will raise Rs. 5.01 billion and increase the number of shares in issue to 401,470,588 from 273 million, with the new shares making up 32% of the enlarged share base.
The amount compares with LWL’s current stated capital of Rs. 787.77 million, the total capital contributed by shareholders to date.
LWL closed Rs. 0.20 up on Friday at Rs. 43. The share reported net assets of Rs. 83 a share as of end-June 2026. Royal Ceramics Lanka PLC was the top shareholder with a 54.55% stake, followed by A.A. Page’s 7.19%. Royal Ceramics is controlled by Vallibel One PLC, which held a 55.96% stake as at end-June 2026.
The funds will be used to partially settle the company’s existing bank borrowings and overdue intercompany trade and other payables, all of which are interest-bearing. The company said this would substantially strengthen its overall financial position and capital structure.
The Rights Issue is subject to the Colombo Stock Exchange (CSE) approving in principle the listing of the new shares and to shareholder approval at an Extraordinary General Meeting, the date of which is yet to be decided.
The Board further resolved that Vallibel Plantation Management will be amalgamated with LWL immediately after the Rights Issue is completed, with LWL continuing as the amalgamated company. The amalgamation is subject to LWL satisfying the solvency test immediately after it takes effect, a statutory requirement that a company be able to pay its debts as they fall due and that its assets exceed its liabilities.
