FCL secures approval to redirect Rs750m unused IPO proceeds

November 12, 2026 (MLN): Shareholders of Fast Cables Limited (PSX: FCL) have approved the use of surplus initial public offering (IPO) proceeds of Rs750.46m, together with the profit earned on them, for working capital, after the principal purposes of the IPO and the commitments made in the prospectus were fulfilled.

The approval came through a Special Resolution at the Annual General Meeting held on October 22, 2026.

The company raised Rs3,129.60m through the IPO. After a working capital settlement of Rs121.60m, the net proceeds stood at Rs3,008.00m. Of this, Rs2,257.54m has been utilized, leaving the surplus of Rs750.46m.

Plant and machinery accounted for the largest share of utilization at Rs1,058.69m, followed by building construction and installation and erection works for plant and machinery at Rs655.87m, and land at Rs229.89m. Loan repayment took Rs268.19m, of which Rs240.67m went to plant and machinery and Rs27.52m to building construction at the existing Unit II facility. Duties and others for plant and machinery came to Rs42.46m, and contingency to Rs2.44m.

The company also earned Rs34.08m in profit on bank deposits in saving accounts and Rs449.93m in returns on mutual fund investments. After Rs113.92m in related taxation, net profit on the proceeds stood at Rs370.09m. With the surplus, the total balance amount comes to Rs1,120.56m.

Duties and taxes of Rs205.68m, relating to adjustable income and sales taxes paid at the time of import and later adjusted against the company’s payable taxes, have been excluded from the utilization.

An agreed-upon procedures report by Crowe Hussain Chaudhury & Co., Chartered Accountants, covering transactions and records up to October 22, 2026, found no discrepancies in the amounts received against the IPO, the profit earned on bank deposits and mutual funds, or the tax deducted on that return.

On the utilization of funds as per the prospectus, the auditors noted that the civil works and the mechanical and electrical works were carried out on land the company already held, acquired in June 2023 for plant expansion. Apart from this, no other discrepancies were identified. The report is dated November 10, 2026.

The aforementioned information was disseminated through a notification to Exchange.

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