Karachi: Bawany Air Products Limited has announced a notable move in its financial strategy, with the decision to issue a substantial number of right shares. The company's board of directors, during a meeting on September 2, 2026, at the company's registered office on I.I. Chundrigar Road, Karachi, approved the issuance of 599,999,732 ordinary shares. These shares, with a face value of PKR 10 each, are to be offered to existing shareholders, aligning with the board's original decision from August 26, 2024, and subsequent amendments directed by the Securities and Exchange Commission of Pakistan (SECP) on June 26, 2025.
The right issue, representing approximately 98.765% of the existing paid-up capital, aims to support the working capital and project completion of Alman Seyyam Sugar Mills Limited (ASSML). This venture, currently under construction in Dera Ismail Khan, is expected to enhance the company's asset base and provide significant returns to shareholders. According to information available from the Pakistan Stock Exchange (PSX), the right issue is offered at par value, reflecting no major investment risk as it is set below the current market price.
The project, targeting a 10,000 MT/Day crushing capacity, involves major components originating from Pakistan, the UK, Germany, Japan, and China. With this strategic investment, ASSML is positioned to capture a substantial share of the local and international markets as a quality producer of refined white sugar and molasses. The proceeds from the right issue will primarily cover the working capital needs and project completion costs, aligning with the company's broader financial consolidation strategy following the successful issuance of shares otherwise than right.
The board has ensured that the right issue is fully underwritten, with substantial shareholders and directors committing to subscribe to their entitlements. This move is expected to bolster the company's financial structure, presenting consolidated financials alongside its subsidiary, ASSML, and ultimately enhancing shareholder value.