Mitchells Fruit Farms Completes Rs500 Million Rights Issue, Awaits PSX Approval

Mitchells Fruit Farms Completes Rs500 Million Rights Issue, Awaits PSX Approval

Mitchells Fruit Farms Limited (PSX: MFL) has confirmed full subscription of its rights issue, totalling Rs500 million , and has formally requested a No Objection Certificate (NOC) from the Pakistan Stock Exchange (PSX) to facilitate the release of proceeds to designated intermediaries.

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According to a letter submitted to PSX management, the company stated that 2.78 million right shares were fully subscribed in line with regulatory requirements. An accompanying auditor’s certificate verified receipt of the entire subscription amount, confirming inflows from directors, substantial shareholders, and the general public.

AspectDetail
Total Rights IssueRs500 million
Shares Issued2.78 million right shares
Issue PriceRs180 per share
Share PremiumRs170 per share
Subscription StatusFully subscribed
Previous Paid-Up CapitalRs228.75 million
Revised Paid-Up CapitalRs256.53 million

Subscription Details

The shares were issued at Rs180 per share , including a premium of Rs170, resulting in total proceeds of Rs500 million. The transaction was executed through designated banking channels and the Central Depository Company’s online payment system.

Auditors also confirmed that the company’s paid-up capital has been revised following the issuance, rising from Rs228.75 million to Rs256.53 million.

Next Steps

Mitchells has now sought PSX clearance to enable the release of funds to bankers to the issue and the Central Depository Company, marking the final procedural step in the rights issuance process. The company said regulatory filings, including the return of allotment, will be completed in due course under applicable provisions of the Companies Act, 2017.

About Mitchells Fruit Farms Limited

Mitchells Fruit Farms Limited (PSX: MFL) is a Pakistani company engaged in the production and sale of fruit products, jams, juices, and other food items. The company has a long-standing presence in Pakistan’s food industry.

About Rights Issue

A rights issue is a corporate action where a company offers additional shares to its existing shareholders in proportion to their current holdings. The funds raised through a rights issue are typically used for expansion, debt reduction, or working capital requirements.

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