📊 Galle Face Capital to Raise Rs. 1.96 Bn via 1-for-1 Rights Issue

Galle Face Capital Partners PLC has announced a massive capital raise to restructure its balance sheet and strengthen its financial position. • Key Transaction Details: - Capital to be Raised: Rs. 1.96 Bn (Rs. 1,958.21 Mn) - Share Issue Ratio: 1 new share for every 1 share held - New Shares Issued: 122.39 Mn ordinary voting shares at Rs. 16.00 per share - Impact on Stated Capital: Doubles total share count to 244.78 Mn shares; amounts to ~2.7x the current stated capital of Rs. 732.81 Mn • Use of Proceeds: - Primary objective is to pay down short-term bank and intercompany borrowings to cut finance costs, alongside funding future investment opportunities. • Market & Valuation Metrics: - Share Price: Closed down Rs. 0.50 at Rs. 18.40 (issue price offered at a discount to market value) - Net Asset Value (NAV): Rs. 24.56 per share (as of end-June 2026) - Major Shareholders: Ceylon Land & Equity (30.04%), Renuka Investments (23.88%), and Almas Holdings (13.94%) • Next Steps: - Subject to in-principle approval from the Colombo Stock Exchange (CSE) and shareholder approval at an upcoming Extraordinary General Meeting (EGM).