Waves Home Appliances Limited plans to raise more than Rs1.5 billion through a rights issue to support business expansion. The company also plans to use part of the proceeds to repay a high-cost liability owed to its holding company.
According to the rights issue documents, Waves will issue 150.02 million new ordinary shares. The company has set the issue price at Rs10 per share, bringing the total value to around Rs1.5 billion. Existing shareholders will receive the new shares according to their proportionate holdings.
The company will offer 56 right shares for every 100 ordinary shares held. This represents 56% of its existing share capital.
“Bank Makramah Limited (BML) has been appointed, in the right issue, as the banker to the Issue with whom an account is opened and maintained by the issuer for keeping the issue amount,” the company document stated.
Waves to Use Rights Issue for Business Growth
Waves is offering the rights shares at their face value of Rs10 each.
The company’s board determined the price after considering its breakup value and future growth potential.
The company said the main objective is to strengthen its financial position. It also wants to support its medium-term operational and expansion plans.
“The principal purpose of the rights issue is to strengthen the company’s financial position and support its medium-term operational and growth objectives.
“The proceeds will be utilised to broaden the company’s product portfolio, fund its working capital requirements, and reduce the company’s existing high-cost liabilities, including loan payable to the holding company.
“Having recently re-entered the air conditioner market, the company intends to expand its presence in this segment further while continuing to invest in its deep freezer and refrigerator segments, thereby broadening its product portfolio,” read the document.
Rs800 Million Allocated for Working Capital
Waves plans to allocate up to Rs800.16 million from the rights issue proceeds to working capital requirements.
This amount represents around 53.3% of the total funds raised.
The allocation will also help the company reduce its dependence on bank financing.
Meanwhile, Waves will use the remaining Rs700 million for partial repayment of its loan from the holding company.
This amount represents approximately 46.7% of the total rights issue proceeds.
The planned allocation gives the company a dual focus. It aims to strengthen day-to-day operations while reducing its financial burden.
Company Plans Higher Production
Waves also plans to increase production and sales by improving the utilisation of its existing manufacturing facilities.
The company currently has an installed manufacturing capacity of approximately 482,500 units annually.
“Planned production is expected to increase from 50,975 units in FY2026 to 110,000 units in FY2027, primarily across deep freezers, refrigerators and air conditioners, while production of washing machines, microwaves and water heaters is also planned to resume,” it added.
The planned increase would more than double production compared with the FY2026 level.
Air conditioners are expected to play a key role as the company expands its presence in the segment.
At the same time, Waves intends to continue developing its refrigerator and deep freezer businesses.
Waves Expands Consumer Appliance Portfolio
Waves Home Appliance Limited was previously known as Samin Textiles Limited.
The company was incorporated in Pakistan on November 27, 1989. It operates as a public limited company under the Companies Ordinance, 1984.
Its core business covers a broad range of domestic consumer appliances and light engineering products.
The company designs, manufactures, processes and assembles various appliances. It also distributes, trades, repairs, reconditions, imports and exports these products.
Its business activities cover several categories within the consumer appliance market.
With the planned rights issue, Waves aims to strengthen its finances while expanding its product portfolio.
The company’s renewed focus on air conditioners, refrigerators and deep freezers could support higher production and sales in the coming years.
The successful implementation of these plans will depend on how effectively Waves deploys the new capital and utilises its existing manufacturing capacity.
