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Rising startups keen to tap stock market for external funding

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Board members of The Startup Council-Standing (L to R)  Chandula Abeywickrama(Founder & Chairman – Lanka Impact-Investment Network). Achala Samaradivakara (Co-Founder & Managing Director – Good Market) Imal Kulathotage (CEO – nCinga) ,Yasura Samarakoon (Manager – Business and Trade Promotion, The Ceylon Chamber of Commerce).Seated (L – R) Prajeeth Balasubramaniam (Managing Partner -BoV Capital- chairman- Startup Council). Shalin Balasuriya, (Co-founder -Spa Ceylon), Brindha Selvadurai-Gnanam (Co Founder –Hatch),Mangala Karunaratne -(Founder & CEO – Calcey Technologies)

by Sanath Nanayakkare

Rising startups in Sri Lanka are keen to tap the stock market for external funding for product development, product launches and scale up and expand their their businesses in new markets, The Island Financial Review learned at a forum held by the Council For Startups, established by the The Ceylon Chamber of Commerce.

The Council provides entrepreneurs with exclusive opportunities and access to international markets

Prajeeth Balasubramaniam Founder, Lankan Angel Network/Managing Partner, BoV Capital who is also the chairman of the Council speaking to The Island Financial Review said,” Today people who have money pour that into the stock market because interest rates have come down. People who used to make higher interest rates are not making that and they are putting that into the stock market because they feel they can get better returns. Similarly if they can channel some of that money through the banking sector or other sources into startups it would be good. The CSE is regulated and the private sector is not going to put money into startups. If the government regulates startup projects and their funding structures then banks and private investors will feel that the risks are minimized and then they will join in to reap the rewards by investing in them”.

“Spring Singapore is a government startups initiative. Singapore state investor Temasek Holdings has put a lot of money into that. If we can create a similar situation people will be convinced that they won’t end up in trouble by investing in startups,” he said.

Imal Kalutotage, CEO of nCinga said,”nCinga was highly fortunate to expand regionally with the support the Ceylon Chamber and its global partners. Via the Chamber, its global partners and members, we were able to attract customers for accelerated growth and investors who also helped us with exit in December 2019. We now have a national body to help provide invaluable market access for startups and am happy to be a part of this to help other entrepreneurs grow”.

The Ceylon Chamber of Commerce recently established the Council for for Startups to address the key needs and challenges of SMEs and startups through allocation of a range of easily accessible opportunities, including access to local and international markets for various partnerships.

Inaugurated in September 2020, the Council for Startups primarily aims to foster a thriving ecosystem of entrepreneurship, which facilitates economic growth and empowerment of startups and SMEs in Sri Lanka.

Offering a highly influential and knowledgeable advantage, the CCC provides the cumulative support of 600 members to promote business opportunities for startups. These alliances (20 Global Chambers, 38Trade/Product and Service Associations and 21 Bilateral Business Councils) position the Chamber in an ideal position to promote business opportunities.

The Council recognizes the benefits of sustaining ripe economic conditions and marketing opportunities for startups and further aims to use its resources and partnerships with high commissions, foreign Chambers of Commerce for startups, and consulting firms in order to create a secure infrastructure that drives optimal business performance.

 

 



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Galadari Colombo awarded ‘SLIM People’s Hotel Brand of the Year 2021’

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The Galadari Colombo was given a thumbs up from the people as the People’s Hotel Brand of the Year for the second time running at the recently concluded SLIM (Sri Lanka Institute of Marketing) People’s Awards 2021.

The uniqueness of the SLIM People’s Awards is the fact that it is awarded by the public which shows the popular choice of the Sri Lankan people.

This is the 15th successful running of the much-anticipated event conducted by SLIM in association with Nielsen which is globally renowned for its measurement and consumer insights.

Having stood the test time of time in the hospitality industry for more than 3 decades the Galadari Colombo is hopeful to remain in the hearts of its people as a brand that is trustworthy and dedicated to service.

 

 

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Expatriates’ organization painting competition for Sri Lankan children from care homes highlights close India-Sri Lanka ties

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Celebrating 75 years of India’s independence in Sri Lanka, Sri Lankan children from care homes converged in Colombo from all across Sri Lanka over 10-11 April 2021 for the final round of the nationwide painting competition organized by Colombo Expatriates Cultural Association (CECA) – a voluntary organization of expatriates consisting of mainly Indians – with support of the High Commission of India, Ministry of Education of government of Sri Lanka and several other partners.

Prof. G.L Peiris, Minister of Education was the Chief Guest and Gopal Baglay, High Commissioner of India was the Guest of Honour at the final round. Several other dignitaries including State Minister Piyal Nishantha were also present. The dignitaries lauded the effort as a shining example of strong people-to-people ties between India and Sri Lanka and stressed the enormous significance of the enriching experience for the children.

The competition was held in three categories – Sub Junior, Junior and Senior. The first round of the competition had seen enthusiastic participation of 4,375 students from child care homes across Sri Lanka. Contestants from all provinces who had produced sixty best paintings were invited along with one care-giver for the final round held in Colombo on April 10 at Hotel Taj Samudra. While top three winners in all the three categories were awarded SLR 100,000, SLR 75,000 and SLR 50,000 respectively in addition to various other gifts, certificates and medals, all the 60 finalists received cash awards, desktop computers, and other gifts contributed by various sponsors.

The event also formed part of ‘India @ 75’ celebrations in Sri Lanka which comprise events and activities in the run up to completion of 75 years of India’s Independence in August 2022. Prime Minister of India Shri Narendra Modi had launched these celebrations in India on March 12 2021, 75 weeks before the 75th Anniversary of Independence. In Sri Lanka, formal launch of these celebrations had taken place on April 9 2021 with the inauguration of ‘India Corner’ at the Nagananda Institute for Buddhist Studies.

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Chrissworld to raise Rs. 56.25 million through IPO

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By Hiran H.Senewiratne 

Chrissworld Ltd. (CWL), an SME company  engaged in the provision of third-party logistics (3PL) services, is gearing to raise up to Rs. 56.25 million via an initial public offering (IPO) on the Colombo Stock Exchange, sources said.

The company plans to offer 7,500,000 Ordinary Voting Shares for subscription at Rs. 7.50 per share. The subscription will open on April 27, with Atara Capital Partners representing the company as managers to the issue.

Meanwhile, the CSE noted in a statement that it has approved an application submitted by Chrissworld Ltd. for the listing of its Ordinary Voting Shares by way of an offer for subscription on the Empower Board of the CSE.

The company,  starting off with Rs. 6 million capital in 2019, expanded its capital to Rs. 22.5 million and projects to obtain Rs. 79 million after the IPO.

Chrissworld will be earmarking milestones with the IPO as the first to be listed on the Empower Board, CSE’s newest listing platform, dedicated to SMEs. Further, Central Depository Systems (Pvt.) Ltd., a subsidiary company of CSE, will step in for the first time as the registrar to the issue.

Amid those developments the CSE  started  on a bullish note yesterday and during the latter part of the day with heavy retail investor participation the CSE witnessed a bullish trend. It is said that manufacturing sector counters became the most popular stocks during the day. Notable price appreciation was reported in Hayleys Group, Royal Ceramic Group and  Distilleries.    

Both indices moved upwards. The All Share Price Index went up by 100.10 points and S and P SL20 rose by 49.18 points. Turnover stood at Rs. 3.51 billion with a crossing. The crossing was reported in JKH, which crossed 1.32 million shares to the tune of Rs. 199.3 million and its share price was Rs. 151.

In the retail market, companies that mainly contributed to the turnover were; Royal Ceramic Rs. 511.2 million (1.46 million shares traded), Expolanka Holdings Rs. 359.9 million (4.5 million shares traded),  Hayleys Group Rs. 359.9 million (4.5 million shares traded), Dipped Products Rs. 321 million (5.5 million shares traded), JKH Rs. 290 million (1.9 million shares traded), and Haycarb Rs. 177 million (1.5 million shares traded). During the day 87.8 million share volumes changed hands in 23900 transactions.

Hayleys shares appreciated by Rs. 6 or eight percent. Its shares started trading at Rs. 75.90 and at the end of the day they moved to Rs. 82. Royal Ceramic shares appreciated by Rs. 13.5 or nine percent. Its shares started trading at Rs. 328.25 and at the end of the day they moved to Rs. 358.75. Expolanka shares appreciated by Rs. 2.70 or five percent. Its shares  started trading at Rs. 49.70 and at the end of the day they shot up to Rs. 52.40 and Distilleries shares appreciated by 70 cent or 3 percent from Rs. 20.20 to Rs. 20.90  

Sri Lanka’s rupee quoted steady at 202.00/203 to the one month US dollar Monday, while gilt yields remained unchanged, dealers said.

The rupee last closed in the one-week forward market at 202/203 to the US dollar on Friday. Sri Lanka markets were dull as seasonal bliss kicks in.

 

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