Thatta Cement Company Limited (THCCL) has approved the issuance of a Rs5.5 billion Sukuk to finance the expansion of its production capacity or acquire an operational company.
The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
“The Board of Directors, after evaluating various options, has approved the issuance of a Sukuk amounting to Rs5.5 billion, including a green shoe option of Rs500 million,” read the notice.
It is pertinent to mention that a green shoe option is a provision in an initial public offering (IPO) that allows the underwriters to sell up to 15% more shares than originally planned at the initial offering price if demand for the stock is high.
THCCL shared that these funds, along with the company’s internally generated funds, will be used to expand its existing production capacity or to acquire an already operational company.
“Through this initiative, the company aims to accelerate growth, diversify revenue streams, and strengthen its competitive position in the market. These investments are expected to generate sustainable returns, enhance long-term profitability, and ultimately create greater value for shareholders,” it added.
As per the company’s latest financial results, THCCL reported a profit of Rs2.34 billion in FY25, compared to Rs1.28 billion in FY24, registering a growth of over 83%.
This translates into an earnings per share (EPS) of Rs28.28, higher than Rs16.08 in FY24.
THCCL was incorporated in Pakistan as a public limited company in 1980. The company is engaged in the manufacturing and marketing of cement, besides holding the ownership of Thatta Power (Private) Limited.
Earlier in April, THCCL completed and commissioned a 4.8MW wind power project at its plant in Thatta, Sindh. This took the company’s total installed capacity from renewable energy sources to 9.8MW, comprising a 5MW solar installation.
“This marks a significant milestone for the company, as the project has been completed well ahead of schedule and commenced operations on April 3, 2025,” the company said back then.
