Feb 28, 2010 (LBO) – A Sri Lankan saltern is planning to raise 200 million rupees from a public offering of equity to expand its capacity and build a new salt refinery, media reports said. Raigam Wayamaba Salterns Limited, was hoping to sell 80 million shares at 2.50 rupees by offering a 28.35 percent stake The Sunday Island newspaper said, quoting chairman Ravi Liyanage.
The firm has a saltern in Palavi in Puttalan, on Sri Lanka western coast.
Liyanage was quoted as saying that the cash raised from the public offer would be used to build a new reservoir, deep tanks and crystallization beds on a 110-acre site in Palavi.
The firm will spend 45 million rupees was needed to build a salt refinery in Bata Atta Industrial zone.
Sri Lanka has a total salt demand for 150,000 metric tonnes a year for household consumption and 30,000 for industrial use, the report said quoting Wayamba Salterns managing director Ganaka Amarasinghe.
Raigam was said to have annual sales of 30,000 tonnes in branded table salt.
The report said the firm had a revenues of 383 million rupees in the 2008/2009 financial year and after tax profits of 172 million rupees, following a 142 percent jump in revenues from a year earlier.