Karachi: Bawany Air Products Limited, a public limited company listed on the Pakistan Stock Exchange, has announced plans to issue additional ordinary shares and acquire 100% of Alman Seyyam Sugar Mills (Pvt.) Limited, according to a corporate briefing session held in June 2024. The company, which was incorporated in Pakistan on August 16, 1978, detailed its financial performance and future outlook at the session.

For the fiscal year ending June 30, 2024, Bawany Air Products reported significant changes in its financial position. According to information available from the Pakistan Stock Exchange (PSX), the company's current assets decreased to 30.58 million rupees from 93.27 million rupees the previous year, while current liabilities fell to 6.52 million rupees from 46.66 million rupees. Equity also saw a decline, standing at 27.79 million rupees compared to 47.42 million rupees in 2023. The company recorded a net decrease in cash and cash equivalents of 62.60 million rupees, contrasting with an increase of 83.75 million rupees in the prior year.

The company did not report any sales during this period, and administrative expenses surged to 22.46 million rupees from 11.12 million rupees. Other income dropped sharply to 0.00 million rupees from 71.67 million rupees, resulting in an operating loss of 22.45 million rupees, compared to a profit of 59.40 million rupees the previous year. The company ended the year with a loss of 22.62 million rupees, following a profit of 59.39 million rupees in 2023.

Looking ahead, the company's Board of Directors approved the issuance of an additional 1.20 billion ordinary shares at a face value of 10 rupees each. This issuance, set to be conducted both by way of right and otherwise than right shares, is subject to the approval of the Securities and Exchange Commission of Pakistan (SECP).

In a strategic move, Bawany Air Products has also signed a Share Purchase Agreement with the sponsor shareholders of Alman Seyyam Sugar Mills (Pvt.) Limited to acquire their entire shareholding. This acquisition involves 51.11 million shares at a price of 234.77 rupees per share, amounting to a total consideration of 12.00 billion rupees. Part of this consideration will be paid through the proposed share issuance, with the remainder to be settled within two years as per the agreement's terms.

The company also seeks to amend its main object clause, shifting its focus from manufacturing to primarily investing in and dealing with various financial instruments.