Business
Agarapathana Plantations goes for much delayed IPO with hope of hitting 10 million kilogram tea production
By Hiran H.Senewiratne
One of Sri Lanka’s leading plantation companies, and one focused on innovation and growth, Agarapathana Plantations Ltd., officially announced its Initial Public Offering of Ordinary Voting Shares recently.
“This IPO was delayed by 15 years due to certain conditions stemming from specific requirements. It is a good investment for prospective shareholders of the company, because we are using modern technology to increase the yield and face labour problems, chairman of the company S.D. R. Arudpragasam said at the event, which was held at the Cinnamon Grand.
“Over the last three years the company underwent major transformative changes to enhance the efficiency and effectiveness of the company to reach the entity’s maximum potential of 10 million kilograms of tea production. Now it has reached 7.5 to 8 million kilograms of tea production, Arudpragasam said.
Arudpragasam added: “The IPO involves 83,070,111 Ordinary Voting Shares at Rs. 9 each. The quantity of shares amounts to 16.61 percent of the post-issue Ordinary Voting Shares of the Company. The
Net Asset Value per share of the Equity (NAV) is Rs. 8.43 and the Offer Price is 1.07 times the NAV. Capital Alliance Partners Ltd., is the manager of the IPO.
“Funds raised via the IPO are for investment in modern equipment to develop APL factories into ‘State of the Art – Processing Centres’ (Rs. 672.6 million) and settlement of high-cost term loans worth Rs. 75 million.
“As per Rule 2.4(c) (i) of the CSE Listing Rules, the company is permitted to open the subscription list within a period of 6 months from the date of receiving approval from the CSE. Accordingly, the company will determine the said date of opening (within the aforesaid time period) and notify the same in due course.”
Lankem Developments PLC is the Parent Company of Agarapatana Plantations, holding 67.45 percent of the issued share capital, while related parties are also shareholders.
Agarapathana Plantations Executive Director Kowdu Mohideen said: “We’re pleased to present investors with an excellent value proposition and a compelling discount to the valuation based on the price to earnings and EV/Hectare metrics.
“The funds raised by the issue will go towards factory modernization while also helping reduce borrowing costs. The investor forum will provide an excellent opportunity for the media, and all interested potential stakeholders, and the public, to witness our value proposition first-hand, make any clarifications. We look forward to a lively and engaging event, and heavy interest in our Issue thereafter.”
Informed sources said: “The Company specializes in the cultivation, manufacture and sale of high-quality tea. APL is one of the few mono-crop companies in the plantation sector, with all of the tea extent located in the High Grown districts of Nuwara Eliya and Badulla, which fall within the Western and Uva High elevation categories.
“The Company has plantations located in the Agras valley and Uva regions in Sri Lanka. Properties held by APL include historical properties like Dambatenne Estate, situated in the Badulla district in the Uva Province of Sri Lanka and ranges in elevation from 1509m to 1936m above sea level. Dambatenne is intrinsically linked to the history of Ceylon Tea. It was instrumental in the building of the Lipton Tea Empire and, by association, the legacy of Ceylon Tea.”
The Business World International Conference and Awards Ceremony organised by Business World International Organisation INC-USA, the event which is recognized as one of the most prestigious Business Award Festivals in the Asia Pacific Region, was held at the Mount Lavinia Hotel, Colombo with the participation of several business personalities and celebrities of Sri Lanka. The Joint Chief Guests were Dr. Purna Bahadur Nepali (Ambassador of Nepal to Sri Lanka) and Prof. Dr. Dietmar Doering (Founder / Chairman – AGSEP Research and Advisory Board Member of Business World International Organization – USA). Guests of Honour were Tham Whye Long (First Secretary/Head of Chancery – High Commission of Malaysia in Sri Lanka), Prof. Dr. Rohan De Silva (President – Sri Lanka Chamber of Small and Medium Industries), (Retd) Major General R. A. J. N. Ranasingha (RSP USP NDC MSC – Sri Lanka Army), Dr. Rohan Pallewatta (Excutive Chairman of the Start-Up High Tech Company – Lanka Harness, a BOI approved company operating in the Free Trade Zone at Biyagama in Sri Lanka), Dr. Kishu Gomes (Chairman – Exterminators PLC, Group Managing Director / CEO – Dreamron Group of Companies & Advisory Committee Member – Sri Lanka Tourism), Dian Gomes (Nonorary Consul of Georgia in Sri Lanka, Chairman – Colombo School of Business Management & Independent Non-Executive Director – Nestle Lanka Ltd).
Special Guests were Rt. Rev. Bishop Prof. Dr. Nissanka Weerappulige (Advisory Board Member of Business World International Organization – USA), Prof. Dr. Dame Anoma Weeraratne Wijenayake (Advisory Board Member of Business World International Organization – USA), Gerd Heinzerling (Advisory Board Member of Business World International Organization – USA), Priyantha Padmasiri (President – Sri Lanka Canada Business Council), M. H. K. M. Hameez (Vice President – Sri Lanka Canada Business Council & Immediate Past President – Sri Lanka Malaysia Business Council). The invitees were graciously welcomed by Dr. Anthony Dexter Fernando (Chairman – Business World International Organisation USA – International Chapter), Dr. Tharindu Wijenayake (Deputy Chairman – Business World International Organisation USA – International Chapter) and Dr. Emerita Wijenayake (Project Chairperson & Director – Business World International Organisation USA – International Chapter).
Sampath Bank recently formalised a strategic partnership with the Chamber of Young Lankan Entrepreneurs (COYLE) by signing a Memorandum of Understanding (MOU) at its Head Office. This partnership highlights Sampath Bank’s ongoing commitment to promoting innovation, driving business growth, and empowering Sri Lanka’s entrepreneurial ecosystem.
Through this collaboration, Sampath Bank will serve as the official banking partner for the COYLE Awards and the Young Lankan Program, two flagship initiatives that recognise business excellence and nurture emerging leaders. Supporting these initiatives allows the Bank to create a strong pipeline for SME engagement, provide access to tailored financial solutions, and build meaningful relationships with the country’s leading entrepreneurs.
ANC, a leading Lankan higher education provider, partnered with Northwood University to host the 2025 NUCARS simulation in Sri Lanka for the first time. Held from April 7–11, the event brought together students from the U.S., Europe, and Sri Lanka for an immersive, hands-on learning experience in automotive retail strategy. Twenty-two ANC students participated, showcasing their ability to compete globally. Celebrating its 28th anniversary, NUCARS emphasized teamwork, cross-cultural collaboration, and real-world business decision-making—highlighting ANC’s commitment to delivering globally recognized education and empowering students with essential skills for the international marketplace, said a release.
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