HTL unveils major corporate shake-up

July 10, 2026 (MLN): Hi-Tech Lubricants Limited (HTL) is set to carve out its polymer business into a new subsidiary while simultaneously arranging a Rs1bn short-term Sukuk facility to shore up working capital, per a Board resolution passed on July 10, 2026.

The restructuring involves an operational carve-out and transfer of the Polymer Business Segment currently housed within the company's operating subsidiary, Hi-Tech Blending (Private) Limited (HTBL).

The segment will be placed under a new direct subsidiary of HTL, with the entity's name subject to SECP approval. HTL's initial capital investment in the new subsidiary qualifies for the general corporate exemption under SECP S.R.O. 1239 (I)/2017, meaning no separate shareholder meeting is required.

Alongside the carve-out, HTBL will raise its authorized capital base from Rs1.5bn (150 million shares) to Rs3bn (300 million shares) and capitalize accumulated unappropriated profits of approximately Rs1.3bn through a 130 million share issuance under a Scheme of Business Re-arrangements.

Riaz Ahmed & Company, Chartered Accountants, has been engaged for certification and audit in connection with the restructuring, while Imtiaz Siddiqui & Associates has been appointed as advisor for the transaction.

On the financing side, the Board approved a Rated, Secured, Privately Placed Short-Term Sukuk (STS) facility of up to Rs1bn.

The instrument is structured under Shariah-compliant Musharakah (Shirkat-ul-Aqd) principles, with M/s Arif Habib Limited (AHL) appointed as the Financial Advisor and Arranger.

The facility carries a tenure of up to nine months from the date of drawdown, with bullet repayment at maturity, and will be priced at 6 or 9-month KIBOR plus a spread to be finalized within competitive market parameters.

The operational execution of both the Scheme of Business Re-arrangements and the Sukuk transaction will proceed immediately under delegated executive authorities granted to management.

The aforementioned information was disseminated through a notification to Exchange.

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