Karachi: At an Extraordinary General Meeting (EOGM) held on September 26, 2024, shareholders of Bawany Air Products Limited passed several key resolutions aimed at expanding the company's capital base and adjusting its investment strategy.

During the meeting, shareholders confirmed the minutes from the previous EOGM held on May 29, 2024, and approved a significant increase in the company’s authorized capital from PKR 11 billion to PKR 12.1 billion. This change will adjust the company’s share structure from 1.1 billion shares to 1.21 billion shares at PKR 10 each. The memorandum of association will be amended to reflect this increase.

According to information available from the Pakistan Stock Exchange (PSX), another major resolution passed involved the further increase of paid-up capital by issuing 600 million new shares, not through rights issuance but directly to certain shareholders of Alman Seyyem Sugar Mills Limited (ASSML) at par value. This issuance is part of a larger deal where Bawany Air Products aims to acquire a 100% stake in ASSML for a total consideration of PKR 12 billion. About half of this amount will be settled by issuing new shares, with the remainder to be paid within two years as per the terms of their Share Purchase Agreement.

Additionally, the company resolved to change its main object clause from manufacturing to mainly investing in and dealing with various securities, indicating a strategic shift towards becoming a holding and investment entity. This resolution also included the provision for any necessary amendments as advised by the Securities and Exchange Commission of Pakistan (SECP) or any other regulatory body, without the need for another special resolution by shareholders.

The Chief Executive, Directors, and Company Secretary have been authorized to handle all legal and corporate formalities for the changes approved, including the applications to the SECP and the PSX.