Maharaja Foods’ Rs. 112.5 m Rights Issue oversubscribed

Monday, 9 March 2026 05:39 - - {{hitsCtrl.values.hits}}

Maharaja Foods PLC said its Rights Issue of ordinary voting shares attracted strong shareholder response has been oversubscribed following the closing of subscriptions on 27 February.

The company said acceptances based on shareholder entitlement amounted to 12,331,351 shares, while applications for additional shares reached 12,392,278 shares.

Total subscriptions therefore amounted to 24,723,629 shares, resulting in the rights issue being oversubscribed.

Maharaja Foods had earlier said it planned to raise Rs. 112.5 million through a 1-for-10 rights issue, offering 12.5 million ordinary voting shares at Rs. 9 each.

The company said proceeds from the issue would be used to expand operations, reduce borrowings and introduce new products.

Around Rs. 47.5 million is expected to be used to establish a SPAR–Maharaja SaveMore retail outlet in Kotahena, including Rs. 17.5 million for setup costs and Rs. 30 million for initial inventory.

Another Rs. 50 million will be allocated to settle loans and overdrafts with Hatton National Bank PLC, which the company said would help reduce finance costs.

The company also plans to allocate Rs. 15 million to launch a new range of ready-made rice and curry mixes targeting the ready-to-eat and instant food market. Funds will be used for machinery, inventory and marketing related to the new product line.

The share price of the company ended unchanged at Rs. 13.30 on Friday.