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:

Current Share Structure and Impact

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

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.

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:

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:

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.