Haseeb Waqas Sugar Mills to Delist from PSX

Haseeb Waqas Sugar Mills Limited (PSX: HWSML) has announced a halt in its mill operations due to significant financial and legal challenges, according to official correspondence dated June 26, 2025. The company told the main bourse that it has no option but to buy back its shares and delist from the Pakistan Stock Exchange (PSX). The sponsors and majority shareholders have been directed to provide all concerned shareholders the opportunity to sell their shares at a price fixed by the PSX, as per the compulsory buyback notice issued on January 6, 2025. The company revealed that it was compelled to shift its mill from Nankana to Alipur, Muzaffargarh, aiming to improve financial health by achieving higher recovery targets. However, this move faced legal opposition from sugar mills in Southern Punjab, which hold a monopoly in the region. The Lahore High Court initially ordered the dismantling of the mill at Alipur and its return to Nankana. Although the company appealed, the Supreme Court dismissed the appeal and upheld the order to dismantle the mill in Nankana. As a result, HWSML suffered huge losses and was unable to run the mill, which requires substantial capital investment. Despite efforts to obtain permission from the Punjab government under the Punjab Industries (Control on Establishment and Enlargement) Amendment Act 2002, and after submitting an application to the Director General of Industries, the company could not secure the necessary approvals to relocate the mill permanently. Following government approval, the company attempted to arrange funds by selling off balance sheet assets, but was unsuccessful. Consequently, HWSML lacks the working capital required to resume operations. The company emphasized that the delay in the buyback process was due to the complexities involved in shifting the mill and related litigation. The public, which has invested heavily in the company, is expected to benefit from the buyback, which aims to mitigate financial losses and provide relief to shareholders. Haseeb Waqas Sugar Mills Limited has requested cooperation from all stakeholders as it navigates this challenging phase.