Bawany Air Products Moves Forward with Rights Issue to Finance Sugar Subsidiary Project

September 03, 2026 (MLN): Bawany Air Products Limited (PSX: BAPL) is proceeding with a rights issue of 599,999,732 ordinary shares to raise Rs5.99 billion. The capital will be used to meet working capital requirements and complete the project of its subsidiary, Alman Seyyam Sugar Mills Limited (ASSML).

The decision was made by the company’s Board of Directors during a meeting held on September 2, 2026, as outlined in a notice sent to the Pakistan Stock Exchange (PSX).

The rights issue was originally approved by the board on August 26, 2024, and was later amended in accordance with directives issued by the Securities and Exchange Commission of Pakistan (SECP) on June 26, 2025.

The board confirmed that all other terms of the original approval remain unchanged, except for updates to the right entitlement percentage and shareholding structure following the company’s earlier issuance of shares other than through rights.

Under the rights issue, shares with a face value of Rs10 each will be offered to existing shareholders in the proportion of approximately 98.765 right shares for every 100 ordinary shares held. This translates to an entitlement ratio of nearly 98.765 percent.

The shares will be issued at par value, priced at Rs10 per share, bringing the total issue size to Rs5,999,997,320.

The company stated that proceeds from the issue will primarily fund working capital needs and the completion of the ASSML project, a sugar plant with a 10,000 MT/day crushing capacity currently under construction in Dera Ismail Khan.

The plant’s major components are being sourced from Pakistan, the United Kingdom, Germany, Japan, and China. Once operational, the facility is expected to position ASSML as a significant producer of refined white sugar and molasses in both local and international markets.

ASSML became a subsidiary of Bawany Air Products following the company’s earlier issuance of shares other than through rights. The board noted that the rights issue is expected to further strengthen the company’s asset base, with consolidated financials to be presented alongside the subsidiary going forward.

Regarding risk factors, the board highlighted that since the rights issue is being carried out at a price below the current market price of the stock, no significant investment risk is associated with the offering.

Major shareholders and directors have confirmed that they will subscribe to, or arrange subscription for, their respective entitlements. Any unsubscribed portion will be fully underwritten in accordance with applicable regulations.

No minimum subscription amount has been set for the issue.

The board has also authorized the company’s directors, chief financial officer, and company secretary to finalize the offer document, coordinate with the SECP and PSX, prepare the issue schedule, and undertake all ancillary steps necessary to implement the rights issue.

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