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KARACHI: Gul Ahmed Textile Mills has issued 20 percent right shares at the Karachi Stock Exchange recently to expand its sales operations in local and international markets, said an official.
“The company will raise about Rs253 million funds from the issued right shares,” said Mohammad Salim Ghaffar, secretary of Gul Ahmed Textile Mills. “The amount will be used for expansion in its sales operations in local and international markets.”
The European Union (EU) recently announced that it would import 75 items from Pakistan at zero rate duty. More than 60 of these items are related to the textile sector.
Pakistan is also striving to win the GSP Plus status of EU that will allow Pakistan to export more items to the bloc at lower duties.
Gul Ahmed Textile Mills exports approximately 40 percent of its annual production, while 60 percent is sold in local markets, said Ghaffar. “The fund from rights will not only help the company improve its working capital but will also lower its debt burden,” he said.
The actual amount of funds from rights is yet to be determined, as shareholders have been given till January 11, 2013 to pay for rights, he said.
An analyst said that shareholders usually opted to buy the issued rights as these shares were issued at a price lower than the market price.
Gul Ahmed Textile has issued such shares at Rs10 each. The stock closed at Rs24.10 with a fall of 58 paisas on a turnover of 5,000 shares at KSE on Wednesday.
“The company will raise about Rs253 million funds from the issued right shares,” said Mohammad Salim Ghaffar, secretary of Gul Ahmed Textile Mills. “The amount will be used for expansion in its sales operations in local and international markets.”
The European Union (EU) recently announced that it would import 75 items from Pakistan at zero rate duty. More than 60 of these items are related to the textile sector.
Pakistan is also striving to win the GSP Plus status of EU that will allow Pakistan to export more items to the bloc at lower duties.
Gul Ahmed Textile Mills exports approximately 40 percent of its annual production, while 60 percent is sold in local markets, said Ghaffar. “The fund from rights will not only help the company improve its working capital but will also lower its debt burden,” he said.
The actual amount of funds from rights is yet to be determined, as shareholders have been given till January 11, 2013 to pay for rights, he said.
An analyst said that shareholders usually opted to buy the issued rights as these shares were issued at a price lower than the market price.
Gul Ahmed Textile has issued such shares at Rs10 each. The stock closed at Rs24.10 with a fall of 58 paisas on a turnover of 5,000 shares at KSE on Wednesday.
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