Karachi January 15 2022: Banker to the Right (Habib Metropolitan Bank Limited) Issue of Feroze1888 Mills Limited (“FML” or the “Company”) has reported receipt of subscription amount of PKR 1,531,844,720 as of the last date of payment i.e. 06th January 2022 against the issue size of PKR 1,582,564,060.
Feroze1888 Mills Limited announced 6 percent right (22.608 million shares) at a premium of PKR 60 per share. Proceeds raised through right issue will be utilized to support the building infrastructure for one of the phase of the project. The list of activities include:
- Building construction;
- Civil works;
- Electrical works etc.
The total cost of the project is PKR 6,235 million out of which PKR 2,981 million will be spent on civil work and PKR 3,254 million will be utilized for purchase of machinery.
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Out of Rs 2,981 million of Civil Cost above, 1,100 million has already been incurred on this project phase (as the project phase started in December 2020). The proceeds raised through Right Issue amounting to PKR 1,582 million will primarily be utilized for Civil Cost.
Two Civil Contractors namely Total Construction and G.R.S Construction have been engaged for this project phase. These Civil Contractors have been working with the Company for over 5 years and are not a related party of the Company.
The major benefit of the capacity enhancement is to reduce the dependency on outsourcing. Moreover, it will contribute in reducing the manufacturing cost and improvement in quality as well. It will increase the spinning capacity by 4.2 KGS in million (7 percent of annual capacity) and weaving capacity by 8.213 KGS in million (14 percent of annual capacity).
Please note that the unsubscribed portion of right shares shall be allotted by the Board of Directors of the Company in accordance with regulation of the Companies Act, 2017. The decision of the Board regarding allotment of unsubscribed shares shall be communicated in due course.
