Thatta Cement Approves Rs. 5.5 Billion Sukuk

Thatta Cement Company Limited (THCCL) has announced the approval of a Rs. 5.5 billion Sukuk to finance its ambitious plans for expanding production capacity or acquiring an operational company. The decision was disclosed in a notice to the Pakistan Stock Exchange (PSX) on Monday. According to the notice, the company’s Board of Directors evaluated multiple financing options before approving the Sukuk issuance, which includes a green shoe option of Rs. 500 million. A green shoe option allows underwriters to sell up to 15% more shares than initially planned if demand exceeds expectations, providing flexibility in raising additional funds. THCCL stated that the funds raised through the Sukuk, combined with internally generated resources, will be directed toward either expanding its existing production capacity or acquiring an already operational company. “This initiative is aimed at accelerating growth, diversifying revenue streams, and strengthening the company’s competitive position in the market,” the company said in its statement. “These investments are expected to generate sustainable returns, enhance long-term profitability, and create greater value for shareholders.” The move comes on the back of a strong financial performance by THCCL. The company reported a profit of Rs. 2.34 billion in FY25, a significant increase of over 83% compared to Rs. 1.28 billion in FY24.