Karachi: In a significant development, Faran Sugar Mills Limited convened an emergent Board meeting on January 13, 2025, to address the allocation of unsubscribed shares from its recent rights issue. The meeting's objective was to finalize the allotment of these shares and to inform the TRE Certificate Holders of the Exchange about the resolutions passed.
The rights issue, as approved in the Board meeting held on August 26, 2024, involved the issuance of ordinary shares worth PKR 507.64 million. This equated to 14,504,034 shares priced at PKR 35 per share, which included a premium of PKR 25 per share. The subscription period concluded on January 3, 2025, with the company successfully obtaining PKR 323.89 million from the subscription of 9,254,091 shares.
However, the process left 5,249,010 shares unsubscribed, resulting in PKR 183.72 million worth of shares remaining. After consolidating 933 fractional shares in the company's name, the Board of Directors exercised their right under the Companies (Further Issue of Shares) Regulations, 2020, to offer and allot the unsubscribed shares.
According to information available from the Pakistan Stock Exchange (PSX), the Board resolved to offer the unsubscribed shares at PKR 35 per share. The allocation saw 4,950,227 shares amounting to PKR 173.26 million offered to the Chairman and Chief Executive, while 298,783 shares worth PKR 10.46 million were allocated to individual investors.
The Board further resolved to approve the allotment of the entire 14,504,034 rights shares to the respective members, contingent upon the subscription of all right shares, including the unsubscribed ones. The Chief Executive Officer, Mr. Ahmed Ali Bawany, and Company Secretary, Mr. Muhammad Ayub, were authorized to undertake necessary actions to implement these resolutions, ensuring compliance with all requisite disclosures and filings.
This strategic move by Faran Sugar Mills Ltd. represents a proactive approach to managing equity and financial resources within the designated market category, demonstrating the company's commitment to maximizing shareholder value through effective corporate governance.