Bawany Air Products boosts capital to Rs12.1bn

October 08, 2024 (MLN): Bawany Air Products Limited (PSX: BAPL) has resolved to increase its authorized capital from Rs150 million to Rs12.1 billion, the company's progress report disclosed today. 

The company signed a share purchase agreement to acquire 100% shareholding in Alman Seyyam Sugar Mill (Pvt.) Ltd. (ASSML) from the sponsor shareholders of ASSML for Rs12bn and has proposed to issue 600 million shares otherwise than the right to sponsor shareholders of ASSM, at a face value of Rs10 per share.

This is subject to the approval of SECP and balance payment will be made within two years.

The company has also announced the issuance of Right shares to be offered to the members of the company in the proportion of approximately 7997.32 Right Shares for every 100 ordinary shares held ie. approximately 7997.32%, at par that is for Rs10 per Right Share subject to applicable laws and regulatory compliances.

Additionally, the company has amended its principal business by amending the object clause from manufacturing to focus on investments in shares, stocks, and other securities.

After fulfilment of all regulatory requirements will request PSX to remove the company from the non-compliant sector.

These events indicate a strategic shift in the company's business operations.

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