Karachi: Loads Limited, a prominent player in the market, has unveiled a strategic move to bolster its financial standing. On January 15, 2026, the company's Board of Directors approved a significant capital increase through the issuance of right shares, as disclosed in a formal statement by the company.
The decision, announced at a board meeting held at the company's head office, entails the issuance of 120 million new ordinary shares. These shares, priced at PKR 12.50 each, include a premium of PKR 2.50 per share. This issuance aims to increase the company's paid-up capital by approximately 47.761%, offering shareholders the opportunity to acquire one right share for every 2.0935 shares they currently hold. The move is expected to raise a total of PKR 1.50 billion.
According to information available from the Pakistan Stock Exchange (PSX), the primary purpose of this capital infusion is to strengthen the company's working capital base. With a notable rise in customer orders, the company intends to increase its raw material inventories, ensuring uninterrupted production and enabling it to capitalize on emerging business opportunities. The proceeds will also be allocated to meet operational overheads and support aftermarket production, thereby stabilizing the supply chain and enhancing profitability.
The company has experienced a significant 25% increase in demand from Original Equipment Manufacturers (OEMs), necessitating a robust working capital strategy. The estimated working capital requirement stands at PKR 2,165.53 million, with PKR 665.53 million financed through banks and the remainder covered by the right issue. The company aims to maintain a smooth business cycle and support its growth trajectory through this strategic financial maneuver.
In a statement, the company's board emphasized that the right issue would not only fortify its capital reserves but also provide shareholders with an opportunity to participate in the company's growth at a preferential price. Moreover, the company's substantial shareholders and directors have committed to subscribing to their respective entitlements, ensuring the right issue's success.
The announcement comes at a time when Loads Limited is positioning itself to enhance its financial stability and operational resilience. The right issue is set at a price below the current market trading value, presenting minimal investment risk. The initiative is expected to bolster shareholder confidence and contribute positively to the company's long-term profitability.