⚡ Flash Summary

Allawasaya Textile and Finishing Mills Limited (AWTX) is holding its 68th Annual General Meeting on October 27, 2025, to discuss several key business items. The most notable item is the proposed sale of a significant portion of the company’s land, measuring 121 Kanals 12 Marlas 21 Yards, located in Multan, with shareholder approval sought via ordinary resolution. The proceeds from this sale will be used to repay liabilities, fulfill working capital requirements, and upgrade plant and machinery. This move aims to improve the company’s financial health by reducing finance costs and enhancing operational efficiency.

📌 Key Takeaways

• 🗓️ AGM Date: October 27, 2025, at 11:30 a.m.
• 📍 Location: Allawasaya Square, Vehari Road, Multan.
• 📝 Agenda: Review and adopt financial statements for the year ended June 30, 2025.
• 🏢 Land Sale: Seeking approval to sell 121 Kanals 12 Marlas 21 Yards of land in Multan.
• 💰 Land Value: Revalued at PKR 851,000,000 as of June 30, 2025.
• 🎯 Use of Proceeds: Repay liabilities, working capital, and upgrade plant/machinery.
• 🤝 Auditor Appointment: Appointing Yousuf Adil Chartered Accountants as external auditors.
• 🔒 Share Transfer: Share transfer books closed from October 21-27, 2025.
• 🗳️ E-Voting: Shareholders can participate via video link; registration required by emailing secretary@allawasaya.com.
• ✉️ Postal Ballot: Special business items will be voted on via postal ballot.
• 📜 SECP Compliance: Adhering to SECP directives regarding electronic participation and restrictions on gifts.
• 🌐 Website: Financial statements and postal ballot procedures available on www.allawasaya.com.
• ⚖️ Scrutinizer: Yousuf Adil Chartered Accountants appointed as scrutineer for postal ballot process.
• ⏳ Completion Target: Transaction expected to complete within one year of ordinary resolution passing.
• 💼 Board Authorization: Board authorized to delegate powers to CEO/Executive Directors for land disposal.

🎯 Investment Thesis

Based on the current announcement, a HOLD recommendation is appropriate. The proposed land sale represents a significant strategic shift, but its ultimate success and impact on the company’s financials remain uncertain. Close monitoring of the land sale process, the use of proceeds, and the resulting improvements in financial performance is warranted before considering a BUY or SELL rating. The price target rationale is dependent on the successful execution of the sale and the subsequent impact on key financial metrics.