📈 Mercantile Investments to Raise Rs. 1.1 Bn via Rights Issue

Mercantile Investments and Finance PLC has announced plans to raise Rs. 1.1 billion through a Rights Issue to bolster its capital base and support future expansion. • Issue Details: The company will issue 33.4 million new ordinary voting shares at Rs. 33 each. This is offered on a 1-for-18 basis (one new share for every 18 existing shares). • Financial Position: As of 31 December 2025, the company’s stated capital stood at Rs. 36 Bn. Notably, net assets per share were recorded at Rs. 5,141 as of September 2025. • Strategic Intent: Proceeds are earmarked to enhance regulatory capital adequacy ratios, ensuring compliance with Central Bank of Sri Lanka (CBSL) requirements while facilitating projected business growth. • Approvals & Compliance: The CBSL granted approval on 11 February. The issue remains subject to Colombo Stock Exchange (CSE) listing approval and shareholder clearance at an upcoming EGM. • Market Context: The share closed at Rs. 34 prior to the announcement. The company maintains a public float of 16.09%, with major stakes held by the Ondaatjie family and associated entities.