Zarea plans Rs3bn rights issue to repay Sukuk, expand agri business

Zarea Limited has secured board approval for a Rs3 billion rights offer, with 120 million shares priced at Rs25 apiece. The company said the proceeds will contribute Rs2 billion toward settling a short-term Sukuk and support working capital for its agricultural commodities operation. The board signed off on the plan on October 30, 2026, and the draft offer document was released on November 2.

The offer price is 29.30% below the October 23 closing level of Rs35.36, and eligible investors are due 16 new shares for every 35 held. Directors and sponsors have committed Rs1.5 billion, while Dawood Equities and three other underwriters have taken responsibility for the balance. Zarea expects sales to increase from Rs2.76 billion in FY26 to Rs4.59 billion in FY27, with added funds allocated to procurement, inventory and customer receivables.