Karachi: The Securities and Exchange Commission of Pakistan (SECP) has officially withdrawn a directive issued earlier this month, allowing Bawany Air Products Limited to proceed with its proposed Right Issue. This development follows the completion of the takeover process by the sponsors of Alman Seyvem Sugar Mills (Pvt.) Limited, as confirmed by SECP officials.

On June 2, 2025, the Commission had issued a directive under section 100 of the Securities Act, 2015, instructing Bawany Air Products Limited not to advance with the Right Issue announced through a Final Offer Document dated May 26, 2025. This directive was a result of concerns regarding compliance with takeover laws.

By June 13, 2025, representatives from Bawany Air Products, including Chief Executive Officer Naeem Anwar and legal advisors, appeared before the SECP. Discussions centered on compliance with the Takeovers law, particularly concerning the acquisition of additional voting shares by Weavers Pakistan (Pvt.) Limited (WPPL). The representatives assured that WPPL had no current intention to exceed a 30% voting share, a threshold that would trigger compliance with the Takeovers law.

On June 23, 2025, further discussions took place with Mohabat Khan, a director of Bawany Air Products and a sponsor of Alman Seyvem Sugar Mills, at the SECP's Head Office. These discussions facilitated a consensus on the takeover process and compliance with regulatory requirements.

According to information available from the Pakistan Stock Exchange (PSX), the plan involves issuing 600 million ordinary shares to the sponsors of Alman Seyvem Sugar Mills, other than by way of Right. This issuance will be accompanied by a mandatory public offer, in compliance with section 114 of the Securities Act, 2015, and related regulations.

The SECP has set a 60-day timeline for the sponsors to make a Public Announcement of Intention (PAI) to acquire voting shares, followed by a Public Announcement of Offer within 60 days after obtaining the necessary approvals. The completion of these steps will enable the issuance of 600 million shares and an additional 599,999,732 shares by way of Right.

Upon successful completion of the public offer process, the directive issued on June 2, 2025, will be formally withdrawn, and Bawany Air Products Limited can proceed with its proposed Right Issue, as outlined in the Final Offer Document.

The market category for this transaction is designated as the securities market.