Myland Developments’ rights issue looking to raise Rs 75 million

COLOMBO: Myland Developments Limited is looking to raise Rs 75 million by way of a rights issue on the Diri Savi Board of the Colombo Stock Exchange.

The funds raised are to be utilized to reduce the firm’s dependence on bank borrowing.

The listing also seeks to raise the profile of the business and take advantage of the tax benefits firms gain by listing before the end of this calendar year.

The company has shown rapid growth after being established in 2017 and was able to post revenue of Rs 119 million in financial year 20/21 representing a turnover growth of 381% over the last financial year. The Profit Before Tax of the firm stood at Rs 38.6 million.

The company has already completed 23 land development projects in its short history.

The company has three ongoing projects that include notable projects in Dompe (254 perches) and Divulapitiya (720 perches).

The company mainly focuses on the Colombo and Gampaha districts.

Managing Director Nalin Perera said that his firm was sacrificing lucrative profits to the banking sector due to a low capital base and higher gearing.

He noted that interest cost was weighing significantly on the costs of the business.

Perera was adamant that land investments as has been historically the case would beat fixed deposits in terms of appreciation and at a lower rate of risk.