Sri Lanka’s Kapruka Holdings in Rs505mn IPO – Corrected | Sinhala News

ECONOMYNEXT – Kapruka Holdings Plc, an e-commerce firm is seeking to raise 505 million rupees in an initial public offer to expand into cross border exports, a business-to-business marketplace, a used goods platform and to bring in third party sellers.

The firm is offering 32.826 million shares at 15.40 rupees.

Kapruka has earned profits of 44.29 million rupees in the year to March 2021, up from 22.03 million a year earlier.

The firm reported revenues of 968 million rupees in the year to March 2021, up 32 percent from a year earlier, cost of sales rose at a slower 24 percent to 614 million rupees, and the firm grew gross profits 48 percent to 353 million rupees.

Kapruka plans to invest the proceeds generated through the IPO in its fully owned subsidiary in the form of share or loan capital in order to fund the growth and expansion of operations of the Group.

“This involves upgrading existing platform as well as venturing into new platforms through its fully owned subsidiaries,” the prospectus said.

“The funds would be utilised by Kapruka E-commerce (Pvt) Limited, a fully owned subsidiary of Kapruka Holdings Limited, through an equity investment or loan and the Company has not decided the exact mode as of the date of this Prospectus” Kapruka said.

The firm said, it intends to open four new platforms – Kapruka Partner Central, for third party existing physical shops, a used goods marketplace, Kapruka Wholesale Marketplace for business to business, and cross border exports.

Kapruka Partner Central: A subsidiary will start a platform for well-established brick and mortar shops in Sri Lanka. This platform will connect buyers and sellers and allow the sellers to choose multiple order fulfilment options.

Used goods marketplace: Kapruka, through its subsidiary plans to launch a used goods marketplace as a fully owned new sub-brand – It is an e-commerce platform for pre-owned goods, connecting buyers and sellers, with added features such as home delivery and order fulfilment.

Kapruka Wholesale Marketplace: Kapruka Business to Business (B2B) combines the bulk purchases, convenience, and value of Kapruka high-quality order fulfilment with features that help improve business purchasing for re-selling purposes.

Kapruka Cross Border Exports: Kapruka has already in global e-commerce platforms such as and to sell Sri Lankan brands to international markets. Sri Lankan brands such as Dilmah, Akbar Tea, Link Samahan have already been tested by Kapruka on these platforms and are now ready to scale up.

If fully subscribed, the IPO would raise 505.52 million rupees, which Kapruka said, will be sufficient for the firms future investments.

Out 15.4 million shares allocated to non-retail investors 8.2 million woudl be allocated to strategic investors, amounting to 25 percent of the total.

The prospectus did not disclose the strategic investors. They will own 5 percent of the company after the issue. (Colombo/ Dec 15/2021 – CORRECTED – Profits and revenues for the year to March 2021 were corrected)

Share to...