⚡ Flash Summary

786 Investments Limited is offering a rights issue to existing shareholders at PKR 10 per share, with a ratio of 1 right share for every 3 ordinary shares held. The purpose of this issue is to repay a subordinated loan and upgrade technology. The total issue size is PKR 49,907,509, consisting of 4,990,751 new ordinary shares. The book closure date for entitlement of right shares is proposed as December 17, 2025.

📌 Key Takeaways

• 💰 Rights Issue: 786 Investments is issuing rights shares to raise PKR 49.907 million.
• 🏢 Ratio: Existing shareholders are offered 1 new share for every 3 shares held (1:3).
• 💲 Price: The issue price is set at PKR 10 per share.
• 🗓️ Book Closure: The book closure date is December 17, 2025.
• 🎯 Purpose: Funds will be used to repay a subordinated loan (PKR 12M Principal + PKR 15.071M Charges) and upgrade technology.
• 🚀 Technology Upgrade: PKR 10 million allocated for software, network server, and investor portal.
• 🤝 Underwriter: Dawood Equities Limited will underwrite unsubscribed shares (3,493,585 shares).
• 📜 Pre-Issue Shareholding: Tara Uzra Dawood holds 29.90% of the shares.
• 🏦 Bankers: Soneri Bank Limited is the banker for the issue.
• 📉 NAV Impact: Net Asset Value per share is expected to decrease from PKR 18.15 to PKR 16.11 post-issue.
• ⬇️ Gearing Ratio: Gearing ratio is expected to improve from 10.12% to 8.55% post-issue.
• ✔️ Board Approval: The rights issue was approved by the board on September 29, 2025.
• ✨ Investment: PKR 10M will be invested in the 786 Smart Fund, and PKR 3.334M in the 786 Money Market Fund.
• 📜 License: Collective Investment Schemes are managed under SECP license valid until May 26, 2025.

🎯 Investment Thesis

HOLD. The rights issue is being undertaken to strengthen the company’s balance sheet and upgrade technology. While the rights issue will improve the capital structure of 786 Investments Limited, investors should carefully consider potential dilution and execution risks associated with the rights issue before investing.