Shadab Textile Mills approves right issue to raise Rs250 million

Shadab Textile Mills Limited has approved a right issue of 6.25 million ordinary shares to raise Rs250 million, following a decision taken by its board of directors at a meeting held on February 3, 2026, according to a filing submitted to regulators and the Pakistan Stock Exchange.

The company will offer approximately 37.65 right shares for every 100 existing ordinary shares held, with each right share priced at ₨40, including a premium of ₨30 over the face value of Rs10. The proposed issue represents about 37.65 percent of the company’s existing paid-up capital and will increase paid-up capital from Rs166 million to ₨228.5 million upon full subscription.

Proceeds from the right issue will be used to finance the addition of plant capacity and to meet working capital requirements, as outlined in the company’s disclosure. The board stated that the planned utilisation is intended to support current and future demand for the company’s products while maintaining a balanced capital structure.

The company noted that substantial shareholders and directors have confirmed their intention to subscribe to their respective entitlements or arrange for subscription, and to deposit subscription amounts at least three days before the commencement of trading. Any unsubscribed portion will be appropriately underwritten in accordance with applicable laws and regulations.

Fractional entitlements, if any, will be consolidated under trust and sold on the Pakistan Stock Exchange, with net proceeds distributed among entitled shareholders. The board also authorised management to finalise the offer documents, appoint bankers, and complete regulatory requirements with the Securities and Exchange Commission of Pakistan, PSX and the Central Depository Company.

The share transfer books of Shadab Textile Mills will remain closed from February 23 to March 2, 2026, with shareholders recorded by the close of business on February 22, 2026, eligible to receive right shares.