Capital Alliance: A Leading Financial Institution in Sri Lanka
Capital Alliance PLC, commonly referred to as CALT, is a prominent financial services provider in Sri Lanka. Established as a primary dealer, Capital Alliance plays a significant role in the country’s financial landscape. As a subsidiary of Capital Alliance Holdings Ltd., the company has evolved over the years, marking its presence in various sectors of the financial market. This article delves into the history, operations, and achievements of Capital Alliance, highlighting its contributions to the Sri Lankan economy since its inception.
History of Capital Alliance
The roots of Capital Alliance can be traced back to 2000 when it was incorporated as Capital Asia Markets Ltd., a subsidiary of Asia Capital Ltd. With an initial share capital of LKR 21 million, Ajith Fernando served as the managing director during its formative years. In 2002, following a change in ownership, the company rebranded itself as Capital Alliance Limited. This change marked the beginning of a new era for the organization.
In 2003, Capital Alliance took a significant step by obtaining a primary dealer license from the Central Bank of Sri Lanka. This license allowed the company to engage actively in government securities and enhance its role in the financial sector. The company’s foresight became apparent in 2013 when it expressed concerns regarding the government’s plans to open new casinos. Capital Alliance emphasized that relying solely on casinos would not be sufficient to boost tourism and pointed out the lack of a gaming regulatory authority at that time.
The company gained recognition for its excellence in financial services when it won four awards at the 2015 Global Banking & Finance Awards, including the prestigious title of Best Investment Bank in Sri Lanka. Such accolades helped solidify Capital Alliance’s reputation as a trusted investment bank within the country.
Strategic Developments and Growth
Over the years, Capital Alliance has engaged in various strategic initiatives to bolster its market position. In 2016, the company played a pivotal role as a sell-side advisor during Hayleys’ acquisition of a 75% stake in Fentons for LKR 960 million. This transaction showcased Capital Alliance’s expertise in mergers and acquisitions, further enhancing its reputation in the financial advisory space.
In 2018, Kasturi Chellaraja Wilson was appointed to the board of directors, bringing with her extensive experience from her role as managing director at Hemas Holdings. Her appointment signaled an intent to strengthen governance and strategic direction within the organization.
A notable rebranding occurred in 2020 with the introduction of a new logo, symbolizing Capital Alliance’s commitment to evolving its strategy and identity. The company placed particular emphasis on serving family-owned businesses, highlighting its dedication to providing tailored financial solutions that cater to this important segment of the market.
Expansion into Bangladesh
Capital Alliance made significant strides beyond Sri Lanka by entering the Bangladesh market in 2021 through an investment agreement with BetaOne Investments Ltd., a merchant bank based in Bangladesh. This expansion reflects Capital Alliance’s ambition to broaden its horizons and diversify its portfolio across regional markets.
Initial Public Offering and Listing
In November 2021, Capital Alliance announced its initial public offering (IPO), which opened on November 25, 2021. The IPO was notably oversubscribed on its opening day, showcasing strong investor interest and confidence in the company’s future prospects. The IPO offered a 12.5% stake valued at LKR 412 million and set the stage for Capital Alliance’s shares to debut on the Colombo Stock Exchange on December 15, 2021.
The successful listing marked a significant milestone for Capital Alliance, positioning it among publicly traded companies and allowing it access to greater capital resources for future growth initiatives.
Operational Excellence
Capital Alliance stands out as one of only five non-bank primary dealer companies operating in Sri Lanka. Its brand has gained recognition as one of the top 100 most valuable brands in Sri Lanka, ranking 95th in Brand Finance rankings for 2023—a commendable rise from its previous rank of 88th in 2022.
The company achieved remarkable financial success by increasing its earnings significantly from LKR 508 million in 2022 to LKR 4.720 billion in 2023. This impressive growth enabled Capital Alliance to enter the LMD 100 second board rankings for listed companies based on revenue for the first time in 2023.
Capital Alliance Holdings Group
Capital Alliance Holdings Ltd., as the parent company of Capital Alliance PLC, plays an essential role in guiding and supporting its subsidiaries. As of 2011, major shareholders included Jet
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