Key Takeaways
- Hi Tech Lubricants Limited approved a restructuring plan and issued a Rs 1 billion Sukuk.
- The polymer business will be transferred to a new subsidiary, subject to SECP approval.
- The company aims to finance working capital through the Islamic financing facility.
Hi Tech Lubricants Limited has announced plans to issue a Rs 1 billion privately placed short-term Sukuk as part of its corporate restructuring. The move is aimed at enhancing the company’s financial flexibility and optimizing its business operations.
According to a disclosure submitted to the Pakistan Stock Exchange (PSX), the board of Hi Tech Lubricants approved the restructuring plan on July 10, 2026. This includes the carve-out of its polymer business into a new subsidiary, which will be subject to approval from the Securities and Exchange Commission of Pakistan (SECP).
The company’s polymer business, currently operating under Hi Tech Blending (Private) Limited (HTBL), will undergo significant changes. HTBL will increase its authorized share capital from Rs 1.5 billion to Rs 3 billion and capitalize approximately Rs 1.3 billion in accumulated profits through a scheme of business rearrangements.
Riaz Ahmad & Company has been appointed as the auditor for the restructuring, while Imtiaz Siddiqui & Associates will act as advisers. The company’s management is authorized to implement both the restructuring plan and the Sukuk transaction immediately.
Separately, Hi Tech Lubricants approved the issuance of a rated, secured, privately placed short-term Sukuk facility of up to Rs 1 billion. This Islamic financing facility will be structured under Musharakah (Shirkat ul Aqd) principles and is intended to finance the company’s working capital requirements.
The Sukuk facility will have a tenor of up to nine months, with a bullet repayment at maturity. Its pricing will be linked to either the six-month or nine-month Karachi Interbank Offered Rate (KIBOR), plus a market-based spread, which will be finalized later. Arif Habib Limited has been appointed as the financial adviser and arranger for the Sukuk.
Hi Tech Lubricants stated that implementation of both the restructuring plan and the Sukuk transaction will begin immediately under the authority delegated to its management. The company believes these measures will help it achieve greater operational efficiency and secure much-needed financing.
