Hi-Tech Lubricants to Raise Rs. 1 Billion Sukuk

Hi Tech Lubricants Limited (PSX: HTL) has approved a major corporate restructuring plan, including the carve-out of its polymer business into a new subsidiary and the issuance of a Rs. 1 billion privately placed short-term Sukuk.

According to a disclosure submitted to the Pakistan Stock Exchange (PSX), the company’s board approved the two initiatives through a circular resolution passed on July 10, 2026.

Under the restructuring plan, the polymer business currently operating under Hi Tech Blending (Private) Limited (HTBL) will be transferred to a newly incorporated direct subsidiary of Hi Tech Lubricants, subject to approval from the Securities and Exchange Commission of Pakistan (SECP).

The company said the restructuring qualifies for a corporate exemption under applicable SECP regulations and will not require shareholder approval.

As part of the exercise, 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 auditor for the restructuring, while Imtiaz Siddiqui & Associates will act as advisers.

Separately, the board approved the issuance of a rated, secured, privately placed short term Sukuk facility of up to Rs. 1 billion to finance the company’s working capital requirements. The Islamic financing facility will be structured under Musharakah (Shirkat ul Aqd) principles.

The company has appointed Arif Habib Limited as the financial adviser and arranger for the Sukuk. The 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.

Hi Tech Lubricants said implementation of both the restructuring plan and the Sukuk transaction will begin immediately under the authority delegated to the company’s management.