Lanka Realty Investments PLC recently announced a Rights Issue in order to raise up to Rs.3.6 billion. In a stock exchange filling on Friday (1), the company noted that the Board of Directors , by a resolution passed on 1 November 2019 resolved to recommend to the shareholders to issue 96,740.648 of ordinary shares by way of a Rights Issue on the basis of one for two at Rs. 37.50 per share. The current stated capital of the company is Rs. 6.379 billion represented by 193.48 million shares. The Rs. 3.6 billion to be raised to part settle Rs. 1.8 billion of debt obligations of identified subsidiary companies; Rs. 900 million to acquire income yielding commercial assets, Rs. 450 million to develop existing properties held by two subsidiary companies and Rs. 477.7 million in fresh investments in the real estate sector. In October 2017, LRI which has operations spanning over five decades, was acquired by a consortium of British and Sri Lankan investors with the aim of becoming the largest real estate company listed on the Colombo Stock Exchange. Subsequent to the acquisition, LRI carried out a rights issue raising Rs. 632.9 million in October 2018 which boosted the Net Assets of the Company and positioned LRI to be the beneficiary of higher volumes of revenue. In August 2019, Lanka Realty Investments (LRI) successfully concluded the largest acquisition share swap amounting to 5.6 billion.
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