Lahore: Zarea Limited, incorporated on September 16, 2020, in Lahore, Punjab, has announced a substantial right share offer to bolster its working capital for projected growth in the upcoming fiscal year. The company, headquartered at Delta 6, Office No. 6011, NASTP, Abid Majeed Road, Lahore Cantt., plans to issue 120 million ordinary shares, representing approximately 45.71% of its existing paid-up capital. These shares will be offered at a price of PKR 25 per share, encompassing a face value of PKR 1 and a premium of PKR 24, culminating in an aggregate issue size of PKR 3 billion.

The company projects its total sales for FY 2027 to reach PKR 4.59 billion, up from PKR 2.76 billion in FY 2026. This anticipated increase is supported by a projected 25% growth in platform fee revenue, expected to reach PKR 567.55 million, while agricultural commodity revenue is forecasted at PKR 4.03 billion. The FY 2026 cost-of-sales ratio will be maintained across both business lines.

According to information available from the Pakistan Stock Exchange (PSX), Zarea Limited aims to accommodate this growth through an additional working capital injection of PKR 1.37 billion. This capital will support the rise in trade receivables from PKR 362.23 million in FY 2026 to PKR 818.08 million planned for FY 2027, alongside increased stocks and advances, projected at PKR 1.58 billion for FY 2027, up from PKR 748.21 million.

The company's net operating cycle is expected to extend to 200 days, compared to 156.03 days recorded in 2026. The comparative cash conversion cycle highlights a reduction in receivables and stocks and advances days, indicating improved operational efficiency.

For further inquiries, stakeholders and interested parties can contact Syed Muhammad Akram, the Company Secretary, at [email protected] or by phone at +92 42 3217 6455.