Bawany Air Products Limited (BAPL) announced on Tuesday its plan to raise Rs6 billion by issuing nearly 600 million shares at Rs10 per share through a rights issue. The company, which was classified as a defaulter at the time of the announcement, disclosed this development in a notice to the Pakistan Stock Exchange (PSX).
According to the notice, BAPL will issue 599,999,732 ordinary shares at par value, totaling Rs5,999,997,320. This rights issue represents approximately 7997.32% of the company’s existing paid-up capital, meaning that shareholders will receive about 7997.32 right shares for every 100 ordinary shares they currently hold.
The purpose of the rights issue is to secure working capital and fund the completion of Alman Seyyam Sugar Mills Limited (ASSML), a sugar mill with a crushing capacity of 10,000 metric tons per day, currently under construction in Dera Ismail Khan. The company expects that ASSML will become a significant player in both local and international markets, producing refined white sugar and molasses.
BAPL emphasized that the rights issue price is set below the current market price, minimizing investment risks. The company also highlighted that this move is expected to shift BAPL from a non-compliant to a regular listing, enhancing returns for shareholders.
