Mauritius Court Blocks Chappal Energies' $100M Rights Issue

The Mauritius Supreme Court has issued an interim injunction restraining Chappal Energies Mauritius Ltd from proceeding with a planned $100 million rights issue. This decision follows an urgent relief application filed by IIHL, which holds a 34.5% stake in the company.

IIHL alleges that Chappal Energies sought to raise equity without its consent, violating a shareholder agreement that mandates arbitration for disputes. Justice Carol Green Jokhoo granted the injunction after determining the matter warranted immediate judicial intervention.

The rights issue was approved during a special shareholders' meeting on June 20, 2026, despite IIHL's exclusion from the process. The dispute intensified following criminal proceedings against the company's sole director, Ufoma Immanuel, by the Economic and Financial Crimes Commission (EFCC).

IIHL contends that the proposed capital raise fundamentally alters the company's ownership structure, aiming to increase control to nearly 85%. The court's ruling comes amid ongoing tensions regarding ownership and control within Chappal Energies.