Maharaja Foods’ Rs. 112.5 m Rights Issue for expansion, debt repayment

Tuesday, 21 October 2025 06:11 - - {{hitsCtrl.values.hits}}

Maharaja Foods PLC said it plans to raise Rs. 112.5 million through a 1-for-10 rights issue, offering 12.5 million ordinary voting shares at Rs. 9 each, according to a filing with the Colombo Stock Exchange.

The company said proceeds will be used to set up a SPAR–Maharaja SaveMore retail outlet in Kotahena, repay short-term debt, and launch a new product line. About Rs. 47.5 million will go toward establishing the new retail outlet, including Rs. 17.5 million for setup costs and Rs. 30 million for initial inventory. Another Rs. 50 million will be used to settle loans and overdrafts with Hatton National Bank, which the company said will reduce finance costs.

Maharaja Foods said it will allocate Rs. 15 million to introduce a new range of ready-made rice and curry mixes, including machinery, inventory, and marketing expenses aimed at the ready-to-eat and instant food market. The rights issue remains subject to regulatory and shareholder approval.

The share closed Friday at Rs. 12.20. The company reported a net asset value per share of Rs. 2.29 as of end-June 2025.