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Karachi, November 29, 2012 (PPI-OT): Gul Ahmed Textile Mills has issued 20% right shares at the Karachi Stock Exchange recently to expand its sales operations in local and international markets.
According to Alfalah Securities Limited, the company will generate about PKR 253 million funds from the issued right shares which the amount will be used for expansion in its sales operations in local and international markets. The company is likely to gain from the benefit announced by European Union under the preferential trade agreement to export textile to EU on lower duties or preferential terms. Gul Ahmed exports around 40% of its annual production which can be further raised by capitalizing on the export potential. The fund from rights will help the company improve its working capital while also lower its debt burden. Gul Ahmed Textile has issued right shares at PKR 10.0 each while the stock is currently trading at PKR 24.10 with very low share turnover at KSE.