Mercantile Investments opts for Rs. 1.1 b Rights Issue

Friday, 13 February 2026 00:23 - - {{hitsCtrl.values.hits}}

33.4 m new shares at Rs. 33 each on 1-for-18 basis
Funds to strengthen capital base in line with expansion plans
Issue approved by Central Bank; subject to CSE, shareholder clearance
Stated capital at Rs. 36 b as of end-Dec. 2025

Mercantile Investments and Finance PLC has announced a Rights Issue to raise Rs. 1.1 billion to strengthen its capital base and enhance regulatory capital adequacy.

The Board of Directors on Wednesday (11) resolved to increase stated capital by issuing 33.4 million new ordinary voting shares at Rs. 33 each in the proportion of one new ordinary share for every 18 existing ordinary shares held by shareholders as at the date of entitlement.

The company’s stated capital stood at Rs. 36 billion, represented by 601.2 million ordinary voting shares as at 31 December 2025.

The company said proceeds from the issue will be utilised to strengthen the capital base and improve capital adequacy ratios in line with projected business expansion, while ensuring compliance with regulatory capital requirements applicable to finance companies.

The proposed Rights Issue has been approved by the Central Bank of Sri Lanka (CBSL) by letter dated 11 February.

The issue remains subject to approval in principle by the Colombo Stock Exchange (CSE) for listing of the new shares, as well as shareholder approval by way of an ordinary resolution at an Extraordinary General Meeting.

The share price of Mercantile Investments ended Rs. 0.50 lower yesterday at Rs. 34.

The company reported net assets of Rs. 5,141 per share as of end-September 2025. The public float was 16.09% comprising 240 shareholders as of 6 November 2025.

Top shareholders were Nilaveli Beach Hotels (20.94%), G.G. Ondaatjie (16.12%), A.M. Ondaatjie (16.12), T.J. Ondaatjie (16.12%) and Mercantile Fortunes (13.81%).