Karachi: Sakrand Sugar Mills Limited has disclosed a comprehensive revival and restructuring plan, approved by its Board of Directors on June 23, 2026. The plan aims to improve the company's operations, liquidity, and long-term shareholder value through several strategic initiatives.

The key feature of the proposed revival plan is the acquisition of a 25% equity stake by a consortium of investors with substantial experience in the sugar industry. The prospective investors have demonstrated the financial capacity required to revive and expand the company's operations. The proposed share transfer is subject to requisite approvals and clearance from the Exchange.

A critical component of the restructuring involves the settlement of outstanding bank debt and the arrangement of new working capital facilities. The incoming investors have shown their willingness to settle liabilities with Bank Makramah Limited and arrange cash finance facilities for the 2026-27 crushing season. This move is expected to enhance the company's operational capabilities, improve sugarcane procurement, and strengthen profitability and liquidity.

According to information available from the Pakistan Stock Exchange (PSX), the plan includes a commitment from the investors to provide an unsecured and interest-free sponsor loan of PKR 100 million. This loan is intended for the maintenance, repair, and upkeep of the plant and machinery, with repayment scheduled at the management's discretion.

The investors have also committed to fully subscribing to any future right issue and to underwriting any unsubscribed portion, in compliance with applicable laws and regulations. This commitment is expected to provide further financial stability to the company.

Additionally, the incoming investors will assist in procuring an additional 2,000,000 maunds of sugarcane, leveraging their industry relationships to support cane development initiatives within the operational vicinity of the sugar mill.

The Board has reviewed and approved preliminary financial and operational projections associated with the revival plan, which form part of the comprehensive information package submitted to the Board. The market category remains classified under the Pakistan Stock Exchange (PSX).