Panther Tyres accelerates expansion with Rs1.99bn fund utilization

March 21, 2024 (MLN): Panther Tyres Limited (PSX: PTL) has successfully utilized funds worth Rs1.99 billion for development, expansion, and short-term working capital requirements, the company’s final progress report issued to the bourse showed today.

To note, the company carried out an Initial Public Offering (IPO) in February 2021 to partially finance its major expansion project.

A sum of Rs1.41bn was allocated to this expansion from IPO proceeds, which included Plant & Machinery, Freehold Land & Development Expenses, and Building & Civil Work.

The company had raised funds through the issuance of 30 million ordinary shares at a strike price of Rs65.80 per share, equivalent to Rs1.97bn.

Accordingly, the company utilized excess funds amounting to Rs464.43m received through IPO to reduce the short-term working capital lines, while the remaining amount was used for expansion.

According to the details available in the company’s report, as of the close of December 2023, the company utilized Rs 101m for Freehold Land & Development Expenses, Rs593m for Building & Civil Works, and Rs1.29bn for Plant & Machinery.

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