Bawany Air Products sets Rs6bn rights issue at 73% discount

Bawany Air Products Limited (PSX: BAPL) plans to raise about Rs5.99 billion through a rights issue, according to Mettis Global. The company will offer 599,999,732 new ordinary shares at Rs10 each, which the report puts at roughly a 73% discount to the market price on September 2, 2026. Existing holders can take up 98.765 rights shares for every 100 they hold, with book closure set for September 23, 2026.

Proceeds will go entirely to Alman Seyyam Sugar Mills (Pvt.) Limited, a wholly owned subsidiary that is setting up a 10,000 MT/day crushing plant in Dera Ismail Khan. Half of the Rs5.99 billion, or Rs2.99 billion, will fund plant and machinery purchases, while the rest covers working capital such as inventory and raw materials. The estimated project cost is Rs12,330 million, and Weavers Pakistan (Pvt.) Limited has pledged to take up 319,712,000 shares, valued at Rs3.19 billion.

BAPL booked a loss of Rs54.05 million after tax for FY25, compared with Rs22.62 million in FY24. Net assets per share are set to shift from Rs(6.98) to Rs(13.87) after the issue, and the company flagged under-subscription risk because the rights are priced below market. Dawood Equities Limited will underwrite Rs2.80 billion of the offer, and United Bank Limited is the banker to the issue.