Masood Textile Mills to Raise Rs. 3,000 Million via Sukuk Issue

Lahore: Masood Textile Mills Limited has announced its decision to issue a Sukuk bond to raise Rs. 3,000 million to address its working capital requirements, according to a notification released in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 (a) of PSX Regulations.

The funding initiative includes an option to increase the raise by an additional Rs. 1,000 million if necessary, under a mechanism commonly known as a green shoe option. The Lahore-based company intends to use the funds raised to bolster its working capital, facilitating smoother operational flows. According to information available from the Pakistan Stock Exchange (PSX), the board of directors has authorized the transaction and will collaborate with banks and financial institutions to set the terms and conditions for this private placement.

The company plans to engage with various qualified institutional buyers (QIBs), investors, and other financial entities for the subscription of the Sukuk issue. In addition to the agreements for fund-raising, Masood Textile Mills is set to create, procure, and provide securities to safeguard the payment obligations towards the stakeholders involved in this transaction.

The detailed terms of the Sukuk issue will be finalized and approved by the participating financial institutions. This strategic financial maneuver is aimed at strengthening the company’s position by securing the necessary capital to meet its immediate operational demands.