COLOMBO, Sri Lanka – 15 September 2026 – RENUKA AGRI FOODS PLC (RAF) has announced its recommendation for a First and Final Scrip Dividend of Rs. 0.10 per share for the financial year ended March 31, 2026. This significant update, outlined in a circular to shareholders, proposes to satisfy the dividend through the allotment and issue of new ordinary shares, pending approval at the upcoming Annual General Meeting (AGM).
Board’s Recommendation and Key Dates
The Board of Directors of Renuka Agri Foods PLC, by a resolution dated August 28, 2026, has put forward this scrip dividend for declaration at the virtual Annual General Meeting scheduled for September 24, 2026, at 3:00 p.m. Shareholders duly registered in the Company’s Share Register and those whose names appear on the Central Depository Systems (Pvt) Ltd (‘CDS’) as at the end of trading on the Record Date, September 28, 2026, will be entitled to participate in the proposed dividend.
The scrip dividend, valued at Rs. 0.10 per share, will be fulfilled by the allotment of new ordinary shares drawn from the company’s profits. The Board has affirmed its confidence in meeting the solvency test outlined in Section 57 of the Companies Act No. 07 of 2007 (as amended) post-allotment, backed by a Certificate of Solvency from Messrs KPMG, Chartered Accountants.
Allotment Details and CSE Approval
Subject to shareholder approval, the dividend will translate into the issue of 6,117,161 new ordinary shares, amounting to a total sum of Rs. 67,900,490.92. This calculation is based on the issued and fully paid shares as at March 31, 2026, and the market value (closing price) of ordinary shares as at the end of trading on August 25, 2026.
The shares will be issued to entitled shareholders in the ratio of 1 new fully paid ordinary share for every 130.58824265 existing issued and fully paid ordinary shares. This ratio is derived from a value of Rs. 0.10 per ordinary share (subject to applicable government taxes) as at the end of trading on August 25, 2026. The Board has deemed these values fair and reasonable to both the Company and its existing shareholders. Crucially, Renuka Agri Foods PLC has already secured “approval in principle” from the Colombo Stock Exchange (‘CSE’) for the proposed allotment and listing of these new Ordinary shares.
Shareholder Approvals and CDS Integration
The proposed method of satisfying the dividend is contingent upon shareholders granting their approval by passing the requisite resolutions at the AGM. The new ordinary shares, once allotted, will rank equally (pari passu) in all respects with the existing issued and fully paid ordinary shares of the Company.
For shareholders whose shares are already deposited in the CDS, the new ordinary shares will be uploaded directly to their respective accounts within five (05) market days from and excluding the Record Date. The company has also advised shareholders holding physical share certificates to open a CDS account and deposit their existing certificates prior to the AGM, facilitating a seamless deposit of new shares into their digital accounts.
Treatment of Residual Fractions
In a unique provision, any residual fractions of shares arising from the allotment process will be aggregated. These aggregated shares will then be allotted to nominated trustees, sold, and the net sale proceeds distributed to a charity or charities approved by the Board of Directors, ensuring a philanthropic outcome for minor fractional entitlements.
This strategic move by Renuka Agri Foods PLC demonstrates its commitment to returning value to shareholders while strengthening its equity base, aligning with regulatory compliance and leveraging the Colombo Stock Exchange’s frameworks.
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