FINANCIAL CHRONICLE – Janashakthi Group is seeking to raise 5 billion rupees through its initial public offering of 500 million shares on April 9, according to the company.
The offering will consist of 500 million ordinary shares, representing a 21.74 percent stake in the company, priced at 10 rupees each.
An independent valuation conducted by Deloitte Sri Lanka has determined that JXG’s per-share value is 15.92 rupees, indicating that the IPO is being offered at a 37.18 percent discount, as stated by the company.
The proceeds from the IPO will be allocated to three primary purposes:
- 3.5 billion rupees will be designated for expansion across financial services.
- 0.5 billion rupees will be utilized for overseas expansion, particularly in East and Southern Africa, with Southeast Asian markets also under consideration. The services provided will include investment banking, non-banking financial services, and insurance.
- 1 billion rupees will be directed towards debt optimization and enhancing the capital structure.
The plan for JXG to go public has been in development for several years, although it was paused during the economic crisis, company officials noted during the IPO announcement.
Ramesh Schaffter, Managing Director/Group CEO of JXG, expressed confidence that the country is in a better position now and is optimistic that the global crisis will resolve soon, which has influenced the decision to proceed with the IPO.
Regarding the timing of the IPO amidst ongoing crises, the company is confident in its ability to raise 5 billion rupees, though Dilshan Weerasekara, Deputy CEO of JXG, remarked that “the number of times it’s oversubscribed may be slightly lower than we anticipated if there had been no crisis.”
He added, “We are in financial services, our businesses are not directly impacted by what’s happening in the Middle East.”
Schaffter further noted, “Volatility and uncertainty in the geopolitical space is a constant.”
Janashakthi Group, a family-owned business, will dilute its family-held shares by issuing new shares. (Colombo/Mar24/2026)
