Karachi: Bawany Air Products Limited has announced a rights issue amounting to PKR 5.99 billion, involving the issuance of 599,999,732 new ordinary shares priced at PKR 10 each. This move represents a significant 98.765% increase in the company's existing paid-up capital.
According to the offer document released on October 13, 2026, this rights issue is a strategic initiative to bolster the company's working capital, primarily aimed at the procurement of sugar cane and packaging, which accounts for 83.5% of the right issue proceeds. The remaining funds will cover other working capital needs, such as salaries and overheads.
This rights issue is available to existing shareholders at a ratio of 98.765 rights shares for every 100 shares held. The book closure date is set for October 21, 2026, with subscription payments accepted from October 23, 2026, to November 16, 2026. The trading period for the Letter of Rights on the Pakistan Stock Exchange (PSX) spans from October 23, 2026, to November 6, 2026.
According to information available from the Pakistan Stock Exchange (PSX), the company's authorized share capital will see a 10% increase, rising from 1.1 billion shares to 1.21 billion shares. Additionally, the net assets breakup value per share is expected to moderately increase by 1.8%, from PKR 9.65 to PKR 9.83.
The offer document highlights that the gearing ratio will experience a minor move, adjusting from 1.59% to 0.79%. The total expenses related to the issue include underwriting and bankers' commissions, PSX fees, SECP supervisory fees, CDC fees, stamp duties, auditor fees, and other miscellaneous costs.
Dawood Equities Limited has been named as the underwriter, with an underwriting commitment of PKR 2.80 billion. The substantial shareholder, Weavers Pakistan (Pvt.) Limited, has committed to subscribing 319,712,000 shares, amounting to PKR 3.197 billion, thereby increasing their shareholding from 0.5% to 26.73%.
This rights issue is a critical component of Bawany Air Products Limited's strategic plans, offering investors an opportunity to participate in the company's growth trajectory. The offer document is available for download on the company's website for further details.