Karachi: Loads Limited, a company incorporated on January 1, 1979, with its registered office located at Plot No. DSU-19, Sector II, Downstream Industrial Estate, Pakistan Steel Zulfiqarabad, Karachi, has announced a significant rights issue to raise PKR 1.50 billion. The announcement was made on January 20, 2026, as part of the company’s strategy to enhance its working capital to meet rising demand.
According to information available from the Pakistan Stock Exchange (PSX), the rights issue involves the issuance of 120 million new ordinary shares at a price of PKR 12.50 each, including a premium of PKR 2.50 per share. The total amount to be raised through this initiative is PKR 1.50 billion, which translates to approximately 47.76% of the existing paid-up capital of Loads Limited.
The decision to proceed with the rights issue was approved during a Board of Directors meeting on January 15, 2026, attended by key figures such as Syed Shahid Ali, Syed Sheharyar Ali, M. Mohtashim Aftab, Chaudhry Ehsan Ul Haq, Ms. Zunaira Dar, M. Z. Moin Mohajir, and Dr. Rozina Muzammil. The primary aim is to support the company’s working capital requirements, particularly in terms of increasing raw material inventories to address growing demand from Original Equipment Manufacturer (OEM) and aftermarket customers.
The rights issue is expected to strengthen the financial position of Loads Limited, enabling the company to sustain its growth trajectory and enhance profitability. The additional funds will be crucial in managing the working capital cycle efficiently, maintaining uninterrupted production, and capitalizing on emerging business opportunities.
The company has decided not to seek public comments on the draft Offer Document, as per the stipulations outlined under sub clause (iv) of clause 2 in the Companies (Further Issue of Shares) Regulations, 2020. Loads Limited emphasizes that investment in equity securities involves certain risks, urging investors to read the Offer Document and risk factors carefully to assess their financial conditions and risk tolerance before making investment decisions.
The funds raised will be pivotal in supporting the company’s activities classified as working capital, such as increasing stock-in-trade and consumable store levels to accommodate the rising demand from OEMs and expanding local and export aftermarkets. With a nearly 25% increase in OEM demand, the company’s working capital needs have surged, making this rights issue an essential move to fortify its supply chain and production capabilities.
Loads Limited’s Chief Executive Officer, M. Mohtashim Aftab, and Chief Financial Officer, M. Mobin Akhter, have certified the accuracy and completeness of the Offer Document, ensuring compliance with all relevant regulations, including the Companies Act, 2017, and the Companies (Further Issue of Shares) Regulations, 2020. This initiative reflects the company’s commitment to maintaining operational stability and delivering shareholder value in a dynamic market environment.