Karachi June 20 2022: Unity has so far utilized PKR 1,900 million from proceeds of PKR 3,750 million raised through right issuance for establishment of edible oil refinery at Port Qasim and edible oil terminal.
Company has spent an amount of PKR 1,900 million on establishment of Refinery out of total allocation of PKR 2,850 million from right issuance.
However, funds of PKR 900 million allocated for establishment of oil terminal still remained unutilized.
The work on the stipulated projects remained slow due to the impact of last wave of COVID-19 which has slowed down construction/manufacturing activities. However, with Covid now subsiding, the Company expects to complete remaining additions to the machinery once it is delivered. Meanwhile, the Company remains committed to executing its well laid down expansion plan as per strategy.
It is expected that the remaining machinery additions to Port Qasim Refinery will be delivered by end of the year 2022. The remaining unutilized amount will be fully utilized to set up the supporting infrastructure by the time machinery is delivered and installed.
The Company has now identified site for establishment of Oil Terminal storage capacity and is in the process of closing the purchase of land. This will fit well with the future strategy of the company and will allow it to be a cost efficient national edible oil and staple food processor.
Unity Foods Limited announced its Right Issue @221.83% on February 19, 2019. The issue comprised 375 million shares at face value of PKR 10 each amounting to PKR 3,750,000,000.
The Right Issue was successfully closed as per approved schedule of Pakistan Stock Exchange Limited.
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