AGHA to boost market share with Mi. Da Rolling Mill, secures Rs385m insurance claim

March 03, 2025 (MLN): The successful installation of the Mi. Da Rolling Mill is expected to increase both the market share and production yield of Agha Steel Industries Limited (PSX: AGHA).

The company has an insurance claim receivable of Rs385 million for assets damaged in a fire incident, which has been duly accepted by the insurance company. These funds will be used for the completion of the Mi. Da. Rolling Mill.

The recovery of this amount is subject to the finalization of the Master Restructuring Agreement (MRA) with banking companies.

The management anticipates that the MRA will be finalized by June 30, 2025, the company's filing on PSX revealed today.

Following the fire incident, the company fully restored its production activities with a Rs300m injection from the sponsor directors.

The enhanced revenue is expected to enable AGHA to meet its financial debt obligations under the MRA.

The management projects overall business volume growth for the year ending June 30, 2025, compared to the previous year.

It also expects to generate sufficient additional cash flows from operating activities to finance the remaining expenditure required for the Mi. Da. Rolling Mill project.

Efforts are underway to recover outstanding trade receivables. However, management remains confident that even in the event of non-recovery, the company will continue its operations without disruption.

Additionally, the company is in active negotiations with lenders to restructure both long-term and short-term loans, excluding TERF and IFRE facilities.

The proposed restructuring plan spans ten years, including a three-year grace period.

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