Hi-Tech Lubricants Limited has approved a major restructuring of its corporate operations, including the separation of its polymer business into a new wholly owned subsidiary and plans to raise up to Rs. 1 billion through a privately placed Sukuk to support working capital.
According to a notice filed with the Pakistan Stock Exchange (PSX), the company’s Board of Directors approved both decisions through a circular resolution dated July 10, 2026.
As part of the restructuring, the polymer business currently housed under Hi-Tech Blending (Private) Limited (HTBL) will be transferred to a newly established direct subsidiary of Hi-Tech Lubricants. The transaction remains subject to approval from the Securities and Exchange Commission of Pakistan (SECP).
The company said the reorganization qualifies for an exemption under SECP’s corporate restructuring regulations, allowing it to proceed without seeking shareholder approval.
To facilitate the restructuring, HTBL will increase its authorized share capital from Rs. 1.5 billion to Rs. 3 billion and convert nearly Rs. 1.3 billion in accumulated profits into share capital through a business rearrangement scheme.
Riaz Ahmad & Company has been appointed as the restructuring auditor, while Imtiaz Siddiqui & Associates will serve as transaction advisers.
In a separate decision, the board also approved the issuance of a rated, secured, privately placed short-term Sukuk of up to Rs. 1 billion. The Islamic financing facility will be based on Musharakah (Shirkat-ul-Aqd) principles and will be used to meet the company’s short-term working capital needs.
Arif Habib Limited has been appointed as the financial adviser and arranger for the Sukuk. The facility will carry a maximum tenor of nine months, with repayment in a single installment at maturity. Its profit rate will be linked to either the six-month or nine-month KIBOR, plus a market-based spread to be determined at the time of issuance.
Hi-Tech Lubricants said execution of both the restructuring plan and the Sukuk transaction will begin immediately under the authority granted to the company’s management.
