Sobhagya Mercantile has announced plans to raise capital through a preferential equity share issue scheduled for December 19. This fundraising initiative represents a strategic capital raising exercise by the diversified sector company.

Fundraising Details

The company has outlined its intention to issue equity shares on a preferential basis as part of its capital raising strategy. The following details have been announced:

About Preferential Share Issues

Preferential share issues allow companies to raise capital from selected investors at predetermined terms and conditions. This method of fundraising provides companies with flexibility in choosing their investor base while ensuring efficient capital allocation.

Company Profile

Sobhagya Mercantile operates in the diversified sector and is classified as a small-cap company. The preferential share issue represents part of the company's ongoing efforts to strengthen its financial foundation and support business growth initiatives.

Sobhagya Mercantile Limited , through its consortium SML CALIBER SPV, has been awarded a mining contract in Maharashtra. The Assam Mineral Development Corporation (AMDCL) has issued a Letter of Intent to the company for operations at the Vadakhol Asoli Ni, Cr, Co & other Associated Mineral Block.

Contract Details

The Letter of Intent, dated November 13, 2025, outlines the scope of work for SML CALIBER SPV, which includes:

• Obtaining Composite License
• Prospecting and preparation of Geological Report
• Mining Plan approval and other statutory permissions
• Land acquisition
• Drilling, excavation, and transportation
• Supply of minerals as Mine Developer and Operator (MDO)
• Sale of minerals on a revenue-sharing basis with AMDCL

Financial Implications

The exact financial terms of the contract have not been disclosed. The company has stated that the awarded contract is for Composite Mining on an MDO and SALE revenue-sharing basis. The final consideration and size of the contract will be determined after the detailed exploration of the allotted mine is completed and a detailed agreement is signed.

Performance Security

As part of the agreement, SML CALIBER SPV has submitted a Performance Security of Rs. 1,50,00,000 (One Crore Fifty Lakh) through a Bank Guarantee valid until November 13, 2030.

Strategic Importance

This contract represents an expansion of Sobhagya Mercantile Limited's mining operations. The Vadakhol Asoli block contains nickel, chromium, and cobalt, which are in demand for industries such as electric vehicle battery production and stainless steel manufacturing.

Next Steps

The company is expected to enter into a detailed contract agreement with AMDCL. Following this, SML CALIBER SPV will commence the detailed exploration of the allotted mine, which will provide more clarity on the project's scope and potential value.

This development aligns with India's efforts to increase domestic mineral exploration and production. As the project progresses, it may contribute to local employment and economic development in the region.