KARACHI: Fauji Fertilizer Company Limited (FFC) has increased its equity stake in Agritech Limited (AGL) to 37.36% after converting its previously held preference shares into ordinary shares, according to a notice filed with the Pakistan Stock Exchange (PSX) on Thursday.
As per the corporate disclosure, Agritech issued 91.67 million ordinary shares to FFC under the conversion agreement. This brings FFC’s total shareholding in Agritech to over 223.83 million ordinary shares, representing 37.36% of the company’s paid-up capital.
Agritech Limited—once known as Pak-American Fertilizer—has long struggled with debt, liquidity challenges, and periodic shutdowns. It was acquired by Azgard Nine in the 2000s and later by the Fauji Foundation’s FFC in an effort to stabilize the operations and ensure continuity in urea production at its Mianwali plant.
This move by FFC aligns with its broader strategy to consolidate its hold on Pakistan’s fertiliser market. With its flagship Sona urea brand and strong distribution network, FFC is the dominant player in the sector. The increased equity stake in Agritech may provide it greater strategic control over the company’s turnaround and operational decisions.
The conversion comes amid a broader shift within Pakistan’s fertiliser industry, where energy supply challenges, government pricing policies, and fluctuating demand patterns have put smaller players at a disadvantage. Industry watchers have noted that greater integration between Fauji-owned entities could pave the way for efficiency improvements and eventual revival of AGL’s production capacity.
The PSX has been informed of the change and TRE certificate holders have been advised accordingly.
