S.G. Power plans Rs535m rights issue to fund healthcare expansion

May 20, 2026 (MLN): S.G. Power Limited plans to raise nearly Rs535 million through a heavily discounted rights issue as the listed company pivots toward Pakistan’s healthcare and pharmaceutical sector, according to an offer document filed with the exchange.

The company, which is set to be renamed Crestwell Healthcare Limited following shareholder approval earlier this month, will issue 53.5 million new ordinary shares at par value of Rs10 each equivalent to 300% of its existing paid-up capital. 

The proceeds will primarily finance the acquisition of a 50% stake, along with controlling interest, in a pharmaceutical company yet to be incorporated under Pakistan’s corporate laws.

About Rs260m has been earmarked for the acquisition and related regulatory approvals from the Drug Regulatory Authority of Pakistan, while the remaining Rs275m will fund working capital needs, including inventory buildup, logistics and vendor payments.

The transaction marks a dramatic strategic shift for S.G. Power, whose historical operations generated just Rs6.15m in revenue in fiscal year 2025 and posted a net loss of Rs8.4m.

Management said the company aims to capitalize on rising demand for medical supplies such as syringes, IV cannulas and disposable healthcare products, targeting long-term supply arrangements with hospitals, government institutions and NGOs.

The rights issue was approved by the board on May 18 and will be offered at Rs10 per share, compared with the company’s six-month average market price of Rs29.27. 

Major shareholders and directors, including Umer Ali Malik and Jawwad Sikander, have committed to subscribe to around 18m shares worth nearly Rs180m.

The company said the capital injection would strengthen its equity base and support future expansion in healthcare-related businesses.

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