Vallibel Finance PLC is raising Rs. 2.12 billion through a rights issue of 29,431,675 new ordinary voting shares at Rs. 72 each, marking only its second rights issue since 2018. The offer is made on a one-for-eight entitlement basis to existing shareholders.
Shareholders approved the issue at an Extraordinary General Meeting on March 26 after the Board of Directors signed off in January. The subscription price of Rs. 72 is priced marginally below the net asset value of Rs. 72.56 as at December 31, 2025, making the offer essentially a par-value call on existing holders.
Managing Director Jayantha Rangamuwa said the company plans to “surpass the Rs. 200 billion mark” in assets during the 2026/27 financial year. Vallibel’s asset base has grown 116% over the past four years to reach Rs. 181.7 billion, with its gold loan portfolio expanding 134% to Rs. 34 billion.
Proceeds will reinforce Tier I capital — currently at 10.77%, narrowly above the 10% regulatory minimum — and fund business expansion into underserved markets. The company recently opened three branches in the Eastern Province and plans to add five more in the Northern Province, lifting its total branch network beyond its current 87 outlets.
Chairman Dhammika Perera holds a controlling 51.44% stake through Vallibel Investments Ltd, with a further 21.43% held directly in his personal name. Public float stands at 21.27%. Vallibel Finance was the fastest institution in Sri Lanka to cross Rs. 100 billion in assets, hitting the mark within 17 years of operations.
The capital raise lands during a period of heightened scrutiny of Sri Lanka’s financial sector, following the disclosure of a Rs. 13.2 billion internal fraud at NDB Bank and the Central Bank’s recent push for mandatory bank consolidation. A successful capital raise by a major non-bank lender provides a signal of continued investor confidence in well-governed NBFCs despite the turbulence.
