Loads Limited is facing delay in investing the Initial Public Offering IPO proceeds in the approved project for expanding the capacities at the Loads Plant, the company informed via an exchange notice.
The company informed that the 550 million investment has been delayed due to a change in requirements of machinery, cost and, availability. Company keeping in view the expected rise in demand of auto parts and to achieve higher level of automation in their existing facility had raised funds thorough an IPO for expansion and modernization of its existing facilities. The company had issued 50 million shares of Loads Limited.
The comapny is also setting up an Alloy Wheels Manufacturing plant in Paksitan in a bid to meet the forecasted rising demand for autoparts in the country. Furthermore, Hi-Tech Autoparts, a wholly subsidiary of Loads Limited opened a letter of credit with Habib Bank Limited to import Alloy Wheels manufacturing plant from Australia. The announcement made in December last year anticipated a time of at least four months – April, 2018 – for the machinery to arrive in Pakistan.
The company had incurred total expenditures worth Rupees 17.128 million in expansion and modernization including machineries imported.
The company, however, informed its stakeholders that the investment of Rs. 550 million in capex will be completed by August, 2018.
The company reported profits worth Rupees 132.356 million for the six months ending December, 2017.