Panther Tyres Limited has announced the successful allocation of Rs1.99 billion towards its development and expansion efforts, alongside addressing its short-term working capital needs.
This was highlighted in the company’s latest progress report submitted to the Pakistan Stock Exchange (PSX) on Thursday.
In a strategic move to fuel its growth, Panther Tyres conducted an Initial Public Offering (IPO) in February 2021. The primary objective was to fund a significant portion of its expansion project.
From the IPO proceeds, Rs1.41 billion was earmarked for the project, covering costs related to Plant & Machinery, acquisition of Freehold Land & Development Expenses, and Building & Civil Work initiatives.
The company managed to raise a total of Rs1.97 billion by issuing 30 million ordinary shares, priced at Rs65.80 each.
The additional funds generated through the IPO, amounting to Rs464.43 million, were strategically utilized to lessen the company’s reliance on short-term working capital facilities. The balance was allocated towards further expansion activities.
Detailing the expenditure, the report specifies that Rs101 million was allocated for Freehold Land & Development Expenses, Rs593 million for Building & Civil Works, and a substantial Rs1.29 billion was invested in Plant & Machinery.
