Waves Home Appliances Limited plans to raise about Rs1.5 billion through a rights issue. The company wants to expand its air-conditioner business, strengthen working capital and reduce expensive debt. Waves will issue 150.02 million new ordinary shares at Rs10 each. Existing shareholders will receive 56 right shares for every 100 ordinary shares they hold. The issue represents 56% of the company’s existing share capital. The company has appointed Bank Makramah Limited as banker to the issue. “Bank Makramah Limited (BML) has been appointed, in the right issue, as the banker to the Issue with whom an account is opened and maintained by the issuer for keeping the issue amount,” the document said. Waves to Use Rs800 Million for Working Capital Waves plans to spend up to Rs800.16 million, or 53.3% of the proceeds, on working capital. The funds will support raw material purchases, production and inventory. They will also help Waves reduce its dependence on bank borrowing. “The principal purpose of the rights issue is to strengthen the company’s financial position and support its medium-term operational and growth objectives,” the company said. It added: “The proceeds will be utilised to broaden the company’s product portfolio, fund its working capital requirements, and reduce the company’s existing high-cost liabilities, including loan payable to the holding company.” Waves recently returned to the air-conditioner market. It now wants to increase its presence in that segment. The company will also continue investing in refrigerators and deep freezers. This strategy aims to broaden its product portfolio and improve sales. Rs700 Million to Go Towards Loan Repayment Waves will use the remaining Rs700 million, or 46.7% of the proceeds, to repay part of a loan owed to its holding company. The company expects the repayment to lower financing costs and strengthen its balance sheet. It also hopes the move will improve cash flows for future operations. The rights shares will carry a price of Rs10 each. Waves said its board determined the price after considering the company’s breakup value and future growth potential. The funding plan comes as the company prepares to increase manufacturing activity across several appliance categories. Production Target to More Than Double in FY2027 Waves currently has an installed manufacturing capacity of about 482,500 units per year. The company plans to increase production from 50,975 units in FY2026 to 110,000 units in FY2027. “Planned production is expected to increase from 50,975 units in FY2026 to 110,000 units in FY2027, primarily across deep freezers, refrigerators and air conditioners, while production of washing machines, microwaves and water heaters is also planned to resume,” Waves said. The company expects better working capital to improve raw material availability and increase factory utilisation. It also plans to restart production of washing machines, microwaves and water heaters. Waves Home Appliances, formerly Samin Textiles Limited, started operations as a public limited company in 1989. It now designs, manufactures, assembles, distributes and trades domestic appliances and light engineering products. The rights issue forms part of Waves’ wider plan to strengthen finances while expanding production and rebuilding its position in Pakistan’s home appliance market.