Colombo, 02 October 2026
Galle Face Capital Partners PLC (GFCP) has announced a significant move to bolster its capital base and finance future growth. The company’s Board of Directors, at a meeting held today, October 2, 2026, resolved to issue 122,388,394 new ordinary voting shares by way of a Rights Issue. Priced at Rs. 16 per share, this strategic initiative aims to raise approximately Rs. 1.95 billion, pending necessary shareholder and regulatory approvals.
Key Details of the Rights Issue
The proposed Rights Issue will offer existing shareholders one (01) new ordinary voting share for every one (01) ordinary voting share currently held. This 1-for-1 proportionate offering ensures that all current shareholders have the opportunity to maintain their proportional ownership in Galle Face Capital Partners PLC.
The Board of Directors has affirmed its opinion that the consideration for which the shares are to be issued – Rs. 16 per share – is fair and reasonable to both the entity and all existing shareholders. This crucial capital-raising exercise is contingent upon receiving in-principle approval from the Colombo Stock Exchange (CSE) for the issue and listing of these new shares, as well as securing the necessary mandate from shareholders at an upcoming Extra-Ordinary General Meeting (EGM).
Strategic Utilisation of Funds
The proceeds generated from this substantial Rights Issue are earmarked for strategic financial maneuvers designed to enhance GFCP’s stability and facilitate its expansion plans. The company has explicitly detailed three primary objectives for the funds:
- Settlement of short-term bank borrowings, aimed at reducing immediate financial obligations and improving liquidity.
- Settlement of short-term intercompany borrowings, streamlining internal group finances and reducing inter-group liabilities.
- Financing future investments, providing crucial capital for growth initiatives, strategic acquisitions, and other long-term value creation projects.
This multi-pronged approach underscores GFCP’s commitment to strengthening its balance sheet while simultaneously paving the way for future growth and enhanced shareholder value.
Impact on Capital Structure and Future Outlook
With the current stated capital of Galle Face Capital Partners PLC standing at Rs. 732,814,112.20, this Rights Issue is poised to significantly expand the company’s equity base. The fresh infusion of capital is expected to provide GFCP with greater financial flexibility, enabling it to pursue new opportunities and navigate the dynamic market landscape more effectively. Investors will be keenly watching the upcoming EGM and the regulatory approvals from the CSE, as this Rights Issue marks a pivotal step in GFCP’s strategic financial roadmap and its journey towards sustainable growth within the Sri Lankan business sector.
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