Waves Home Appliances plans Rs1.5bn right issue to fund expansion, repay loan

Business Recorder reports that Waves Home Appliances plans to raise more than Rs1.5 billion through a rights issue. The company will issue 150.02 million new ordinary shares at Rs10 each, offering existing holders 56 shares for every 100 they own. The issue is priced at par, and the board set the price with reference to its breakup value and outlook.

The Rs1.5 billion will be divided between working capital and debt repayment. Up to Rs800.16 million, or 53.3%, goes to working capital needs, and the remaining Rs700 million, or 46.7%, will partly repay the loan owed to the parent company. The company also expects the funds to lower its reliance on bank borrowing. Bank Makramah Limited (BML) is the banker to the issue and holds the account for the proceeds.

Waves intends to widen its product line by growing its air conditioner business and keeping investment going in deep freezers and refrigerators. Production is projected to reach 110,000 units in FY2027, compared with 50,975 units in FY2026, using an installed capacity of about 482,500 units a year. Washing machines, microwaves and water heaters are also set to resume production.