Karachi: Faran Sugar Mills Limited has announced a major expansion of its paid-up share capital. The Board of Directors, in their meeting on August 26, 2024, resolved to issue 14.50 million additional ordinary shares. This rights share issuance is aimed at existing shareholders, offering 58 rights shares for every 100 ordinary shares held, representing a 58% entitlement ratio.

According to information available from the Pakistan Stock Exchange (PSX), the new shares, priced at PKR 35 each, include a premium of PKR 25 over the face value of PKR 10 per share. The substantial increase in capital is structured under the regulations outlined by the Securities Act, 2015, the PSX Rule Book, and the Companies (Further issue of shares) Regulation, 2020. The closure dates for the Share Transfer Books, crucial for determining shareholder entitlement, will be announced following the finalization of the offer documentation.

The details enclosed in the company’s announcement include a comprehensive statement on the issue’s scale and objectives, the anticipated benefits to the company and its shareholders, and the rationale for issuing shares at a premium. Additionally, the announcement included extracts from the board resolution passed during the recent meeting and a draft notice regarding the rights issue and book closure procedures set for publication.

This strategic move by Faran Sugar Mills Limited is expected to bolster its financial footing and enhance its operational capabilities, providing a substantial boost to shareholder value.