Hi-Tech Lubricants approves corporate restructuring, plans Rs1bn short-term sukuk

LAHORE: Hi-Tech Lubricants Limited (HTL) has approved a corporate restructuring plan that includes the carve-out of its polymer business into a new wholly owned subsidiary and the issuance of a rated, secured, privately placed short-term sukuk facility of up to Rs1 billion to finance working capital requirements.

In a material information notice submitted to the Pakistan Stock Exchange (PSX) and the Securities and Exchange Commission of Pakistan (SECP) on Monday, the company said its board approved the initiatives through a circular resolution passed on July 10, 2026.

As part of the restructuring, HTL will transfer its polymer business segment, currently operating under its subsidiary Hi-Tech Blending (Private) Limited (HTBL), to a new direct subsidiary of HTL. The name of the new company will be approved by the SECP.

To facilitate the restructuring, HTBL will increase its authorised share capital from Rs1.5 billion (150 million shares) to Rs3 billion (300 million shares). 

The company will also capitalise accumulated unappropriated profits of around Rs1.3 billion through the issuance of approximately 130 million shares under a Scheme of Business Rearrangements.

HTL said Riaz Ahmad & Company, Chartered Accountants, has been appointed to carry out the certification and audit related to the restructuring, while Imtiaz Siddiqui & Associates will act as advisers.

Separately, the board approved the issuance of a short-term sukuk (STS) of up to Rs1 billion to meet working capital requirements. The sukuk will be structured under Shariah-compliant Musharakah (Shirkat-ul-Aqd) principles.

The company has appointed Arif Habib Limited (AHL) as the financial adviser and arranger for the transaction.

According to the disclosed commercial terms, the sukuk will have a tenure of up to nine months, with a bullet repayment at maturity. The pricing will be based on six- or nine-month KIBOR plus a spread, which will be finalised in line with market conditions.

HTL said execution of both the restructuring plan and the sukuk transaction will begin immediately under powers delegated to the company's management.