Vivid Mercantile Board Approves Rights Issue of ₹2506.41 Lakhs at ₹5 Per Share

Vivid Mercantile Limited has successfully concluded its Board of Directors meeting held on March 26, 2026, approving the comprehensive terms for its proposed rights issue of equity shares. The board meeting, which commenced at 4:00 PM and concluded at 5:15 PM at the company's registered office, resulted in the formal approval of the Draft Letter of Offer for submission to BSE Limited and SEBI.

Rights Issue Details Approved

The board has finalized the complete framework for the rights issue, establishing clear terms for existing shareholders:

Parameter: Details Total Shares Offered: Up to 5,01,28,200 equity shares Issue Price: ₹5.00 per share (₹1 face value + ₹4 premium) Total Amount: Up to ₹2506.41 lakhs Entitlement Ratio: 1:2 (1 new share for every 2 existing shares)

Current Share Structure and Impact

The rights issue will significantly expand the company's equity base, providing existing shareholders with proportional investment opportunities:

Share Structure: Current Post-Issue Outstanding Equity Shares: 10,02,56,400 15,03,84,600 Face Value: ₹1.00 per share ₹1.00 per share Subscription Basis: - Full subscription assumed

Payment Terms and Process

The board has established a straightforward payment mechanism for the rights issue, with the entire amount payable on application. Shareholders will pay ₹5.00 per rights equity share, comprising ₹1.00 face value and ₹4.00 premium. The record date for determining eligible shareholders will be announced in due course.

Regulatory Compliance and Documentation

The meeting outcome was formally communicated to BSE Limited under Regulation 30 of SEBI (LODR) Regulations, 2015, and Regulation 71 of SEBI (ICDR) Regulations, 2018. Managing Director Satishkumar Ramanlal Gajjar digitally signed the regulatory filing on March 26, 2026, ensuring full compliance with disclosure requirements.

Regulatory Aspect: Details Filing Authority: BSE Limited and SEBI Regulation Compliance: SEBI (LODR) 2015, SEBI (ICDR) 2018 Documentation: Draft Letter of Offer approved Record Date: To be announced BSE Script Code: 542046

Company Information and Next Steps

Vivid Mercantile Limited, incorporated under CIN L74110GJ1994PLC021483, operates from its registered office at G/19, Hemkut Owners Association, Opp. Capital Comm Centre, Ashram Road, Ahmedabad, Gujarat. The company will now proceed with filing the Draft Letter of Offer with BSE Limited for prior approval and submit it to SEBI for information and website dissemination. The detailed terms, including application procedures and fractional entitlement handling, will be specified in the comprehensive Letter of Offer document.

Vivid Mercantile Limited has announced a postal ballot seeking shareholder approval for a significant increase in its authorised share capital. The company issued the notice on February 16, 2026, proposing to enhance its capital structure to support future business requirements.

Proposed Capital Structure Changes

The postal ballot seeks approval for increasing the company's authorised share capital through the following restructuring:

Parameter Current Structure Proposed Structure Authorised Capital Rs. 10,03,00,000 Rs. 15,25,00,000 Number of Shares 10,03,00,000 equity shares 15,25,00,000 equity shares Face Value Rs. 1 per share Rs. 1 per share Additional Shares - 5,22,00,000 equity shares

The proposal involves creating additional 5,22,00,000 equity shares of Rs. 1 each, representing a substantial expansion of the company's authorised capital base. This increase will require consequential alteration to Clause V of the Memorandum of Association.

Postal Ballot Timeline and Process

The company has established a comprehensive timeline for the postal ballot process:

Event Date & Time Cut-off Date Friday, February 20, 2026 Notice Dispatch Completion Tuesday, February 24, 2026 E-voting Commencement Thursday, February 26, 2026 at 9:00 A.M. (IST) E-voting Conclusion Friday, March 27, 2026 up to 5:00 P.M. (IST) Scrutiniser's Report Submission On or before March 31, 2026 Results Announcement On or before March 31, 2026

Shareholders whose names appear in the register of members as on the cut-off date of February 20, 2026, will be eligible to participate in the voting process. The company has engaged National Securities Depository Limited (NSDL) to provide e-voting facilities for the postal ballot.

Governance and Compliance Framework

Vivid Mercantile has appointed M/s. Neelam Somani & Associates, Practicing Company Secretary, Ahmedabad (COP No. 12454), as the scrutiniser for conducting the postal ballot. The scrutiniser will ensure the voting process is conducted in a fair and transparent manner, with their decision on vote validity being final.

The postal ballot is being conducted in accordance with Section 110 of the Companies Act, 2013, and the Companies (Management and Administration) Rules, 2014. The process also complies with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and SEBI (LODR) Regulations, 2015.

Strategic Rationale and Board Recommendation

According to the explanatory statement, the Board of Directors approved and recommended the capital increase at their meeting held on February 16, 2026. The company stated that the increase is intended to accommodate rights issues and future requirements, indicating potential expansion plans or capital-raising activities.

The Board considers the alteration to the capital clause of the Memorandum of Association to be in the interest of the company. The resolution is being proposed as an Ordinary Resolution, and the Board has confirmed that no directors, key managerial personnel, or their relatives have any financial interest in the resolution beyond their shareholding in the company.

The postal ballot notice and related documents are available on the company's website at www.vividmercantile.com and will be communicated to stock exchanges upon completion of the voting process.

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