BAPL proceeds with rights issue to fund ASSML project

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

The decision was taken by the company's Board of Directors at a meeting held on September 2, 2026, according to a notice sent to the Pakistan Stock Exchange (PSX).

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

The board said all other terms of the original approval remain unchanged, barring updates to the right entitlement percentage and shareholding structure following the company's earlier issuance of shares otherwise than right.

Under the rights issue, shares carrying a face value of Rs10 each will be offered to existing members in the proportion of approximately 98.765 right shares for every 100 ordinary shares held, translating to an entitlement ratio of nearly 98.765%.

The shares will be issued at par, that is at Rs10 per share, taking the total size of the issue to Rs5,999,997,320.

The company said proceeds from the issue will primarily go toward funding working capital needs and completing the ASSML project, a 10,000 MT/day crushing capacity sugar plant currently under construction in Dera Ismail Khan.

The plant's major components are being sourced from Pakistan, the UK, Germany, Japan and China, with the facility expected to give ASSML a substantial share in local and international markets as a producer of refined white sugar and molasses.

ASSML became a subsidiary of Bawany Air Products following the company's earlier issuance of shares otherwise than right, and the board said the rights issue is expected to strengthen the company's asset base further, with consolidated financials to be presented alongside the subsidiary going forward.

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

Substantial shareholders and directors have confirmed they will subscribe to, or arrange subscription for, their respective entitlements, while any unsubscribed portion will be fully underwritten as per applicable regulations.

A minimum subscription amount has not been prescribed for the issue.

The board further 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 required to give effect to the rights issue.

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