MIC to Slash Stated Capital by Rs 5.15 Billion following Net Losses

The Mauritius Investment Corporation (MIC) has announced a significant proposal to reduce its stated capital by Rs 5.15 billion, aligning the institution’s financial structure with the actual value of its assets following a multi-billion rupee loss.

The board of directors confirmed the reduction represents the portion of capital no longer supported by real asset values.

Once the operation is complete, the MIC’s stated capital will stand at Rs 75.85 billion. The move, made public on 23 December, is expected to take effect in late January 2026, following a mandatory 30-day notice period.

Strategic Pivot and Repayment

The capital reduction is a cornerstone of a new strategic direction focused on “orderly and responsible exits.” According to the 2025 annual report, Chairman Rajeev Hasnah stated that the MIC has ceased all new disbursements to preserve capital.

The primary objective has shifted toward:

• Asset Protection: Safeguarding existing investments.
• Maximising Recovery: Recouping funds from the 55 beneficiary companies currently in the portfolio.
• Shareholder Repayment: Returning capital to the Bank of Mauritius, the MIC’s sole shareholder, via a transparent reimbursement process.

Financial Headwinds

The decision follows a challenging fiscal year ending 30 June 2025, in which the MIC recorded a net loss of Rs 6.8 billion. This deficit was driven by a Rs 4.2 billion impairment and a Rs 3.5 billion drop in the fair value of financial investments.

Despite these losses, the MIC reported a Rs 2.5 billion gain in its land portfolio, which includes its wholly-owned subsidiary, MIC Smart City Ltd.

Legacy of the Pandemic

Established in June 2020 by the Bank of Mauritius, the MIC was originally a private limited company tasked with supporting national firms during the COVID-19 crisis.

However, as of January 2025, the corporation has transitioned to an independent governance structure.

Management noted that the majority of supported companies have now overcome pandemic-related hurdles and are showing operational recovery, justifying the shift from emergency funding to investment recovery.

The MIC Portfolio at a Glance

As of 30 June 2025, the MIC’s total investments at cost stood at Rs 57.5 billion. The portfolio is heavily weighted toward a few key sectors:

While new disbursements are largely frozen, the MIC did release Rs 1.3 billion during the 2025 financial year. The vast majority of this (Rs 1.2 billion) was committed before 15 November 2024, honoring previous private equity and equity agreements.

Source: Defi Media