KARACHI: Unity Foods Limited will sell 200 million right shares at Rs27/share to raise Rs5.4 billion to meet the increased working capital requirements of the company, a bourse filing said on Monday.
“The right issue has been announced at a price below the current market price; hence, there is a minimal investment risk associated with the right issue,” it added. The price reflects 30.96 per cent discount to the last six months volume weighted average share price.
The right issue constitutes 20.12 per cent of the company’s paid-up capital, which would be increased from Rs9.94 billion to Rs11.94 billion.
“The proceeds will be primarily utilised for meeting the increased working capital requirements. This is expected to positively impact the profitability; thereby, enhancing the expected returns to the shareholders.”
The company in its first quarter report notes the new financial year has brought exceptional challenges to the global economy, as the commodity and energy price surge remain relentless. “This, coupled with devaluation has sprouted new challenges for the company.”
“While our industrial and commercial sales continue to provide a natural hedge to the business, the management remains vigilant and is actively managing the business to keep the adverse impacts to a minimum.”
Unity Foods has a diversified business portfolio operating in an assorted agro product mix for a global breadbasket, handling various agro commodities to connect them from the farm to the dining table.
The products include edible oil, staples (flour, rice, lentils, pulses), industrial fats and various feed ingredients for the poultry and livestock sector.
