Wednesday, December 7, 2022
HomeEquityMaple Leaf Cement Factory (MLCF) to raise 4.2 Billion from Right Issue...

Maple Leaf Cement Factory (MLCF) to raise 4.2 Billion from Right Issue of the 23 billion required for Expansion Project

Maple Leaf Cement Factory (MLCF) has announced a 12.50% Right Issue at a premium of Rs. 55/- (i.e. Rs 65/-) per share. The decision was taken for the issue was taken during the Board Meeting held on 15th of August, 2017.

The Right Share is being offered at a price of Rs. 65/- per share including a premium of Rs. 55/- per share which is far less than average price of the preceding twelve weeks price of the shares of company.

The company expect the funds generated from the issue to help finance the expansion project of 7,300 tpd grey clinker production capacity and forecast the overall capacity increase to increase profitability of the company.

The company’s financial plan estimate a cost of 23,000 million Rs. for the expansion project. The Board has opted for three avenue to fulfill the requirement of required capital; borrowing 11,000 million from Banks, generating internal cash worth 7,712 million and 4,288 million from the Right Issue.

In a notice released to PSX on 15th of August, 2017 the company informed the shareholders of the company’s future plans with respect to Right Issue funds allocation. The company informed that in order to finance the cost of additional dry process Clinker production line of 7,300 tpd grey clinker production, The board has recommended to issue 12.5% Right Shares by offering 65,966,740 Right Shares to the existing shareholders of the company at a price of Rs. 65/- per share (including premium of Rs. 55/- per share) in proportion of 12.50 shares per every 100 ordinary shares held.

The company highlighted investment risk regarding the Right Issue, mentioning that the price of Rs. 65/- for Right Issue is to be much less than the current share price in the market.

The commencement of trading of Unpaid Rights is to begin from Monday, 25th of September 2017. 

Posted on: 2017-09-21T10:46:00+05:00
RELATED ARTICLES
- Advertisment -

Most Popular