Sri Lanka’s Maharaja Foods to raise Rs112.5mn from rights issue

ECONOMYNEXT – Sri Lanka’s Maharaja Foods plans a 1 for 10 rights issue of 12.5 million ordinary voting shares at 9 rupees each to raise 112.5 million, a stock exchange filing said. The cash will be used to establish the SPAR–Maharaja SaveMore retail outlet at Kotahena, repay debt, and fund a new product line, the company said: 1. To establish the SPAR–Maharaja SaveMore retail outlet at Kotahena – A total allocation of Rs. 47.5 million will be utilized, comprising Rs. 17.5 million for supermarket setup costs and Rs. 30 million for one month’s inventory requirements. 2. To retire short-term loans…

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