Bawany Air Products Limited (PSX: BAPL) was incorporated in Pakistan as a public limited company in 1978. The company is engaged in the production and trading of oxygen gas, nitrogen gas and dissolved acetylene.
Pattern of Shareholding
As of June 30, 2025, BAPL has a total of 7.503 million shares outstanding which are held by 1248 shareholders. General public has the majority stake of 56.52 percent in the company followed by banks, DFIs and NBFIs holding 42.45 percent shares. The remaining shares are held by other categories of shareholders.
Historical Performance (2020-2024)
During the period under consideration, the company registered sales only in 2020. The bottomline stayed in the negative zone in all the years except 2023 where hefty other income saved the day for BAPL. The detailed performance review of the period under consideration is given below.
In 2020, the company recorded 73.35 percent curtained net sales to the tune of Rs.12.80 million. BAPL’s sales volume which was already suffering due to plant breakdown and the slowdown of ship breaking industry was hit hard by COVID-19. Sales volume dropped by 75.64 percent to clock in at 326,874.37 cubic meters in 2020. The company operated its plant at a minimal capacity of 3.66 percent. Higher fixed cost per unit due to lower capacity utilization was further exacerbated by Pak Rupee depreciation and soaring inflation, resulting in gross loss of Rs.3.35 million in 2020.
Selling & distribution expense plunged by 52.48 percent in 2020 due to thin sales volume. The company further rationalized its workforce to 13 employees in 2020. However, higher legal & professional charges, utility expense as well as fee & subscription charges allowed the company to record only 12.29 percent lower administrative expense in 2020.
While the company recorded gain worth Rs.1.16 million on the disposal of its property, plant and equipment in 2020, higher base effect provided by liabilities written back in 2019 resulted in 64.27 percent decline in other income in 2020. BAPL booked impairment of Rs.68.62 million on its idle plant in 2020. This resulted in 426.36 percent spike in other expense in 2020.
The company recorded operating loss of Rs.84.59 million in 2020, up 344.72 percent year-on-year. Finance cost slid by 20 percent in 2020 as the company settled mark-up pertaining to unpaid provident fund at the year end. Net loss mounted 502.66 percent to clock in at Rs.87.187 million in 2020.
This translated into loss per share of Rs.11.62 in 2020. During the year, the company received a public offer from Fossil Energy Private Limited to acquire 51 percent of BAPL’s shares. The agreement also included the obligation of the company to dispose all of its assets to settle its liabilities.
In 2021, Fossil Energy Private Limited withdrew its intention to acquire the company. However, the company successfully paid off the outstanding liabilities of all of its creditors. Hence, the assets of the company were released from any charge. However, the company couldn’t sell off its assets as intended in 2021. Since 2021, BAPL has recorded no sales. The company didn’t conduct any production operations during the period under consideration. The number of employees which were 13 in 2021 was reduced to 2 in 2025.
Administrative expense continued to climb from Rs.8.22 million in 2021 to Rs.52.94 million in 2025 owing to fixed charges. In 2021, other expense fell by 84.46 percent due to high-base effect as the company recorded impairment on idle plant in 2020. Since 2021, the company started recording expense related to idle plant, machinery and factory as well as impairment on stores & spares and non-financial assets. These expenses continued to decline over the years resulting in no other expense in 2024 and 2025.
The company sold off its assets worth Rs.150 million in 2022 and Rs.215 million in 2022 and continued to pay off its long outstanding liabilities. One notable development during the period under review was the recording of net profit worth Rs.59.39 million in 2023. While the company made no sales during the year, net profit was the result of other income of Rs.71.67 million recognized in 2023. This was due to gain on disposal of assets held for sale.
BAPL registered EPS of Rs.7.92 in 2023. In 2024, the company registered net loss of Rs.22.62 million and loss per share of Rs.3.02. During 2024, the company made a resolution to increase its share capital from Rs.150 million to Rs.12 billion. It also signed a share purchase agreement to acquire 100 percent shares of Alman Seyyam Sugar Mill (Pvt.) Ltd. (ASSM) for Rs. 12 billion. For this, BAPL proposed to issue 600 million shares.
In 2025, the company changed its course of operations from manufacturing, production and trading of oxygen gas, dissolved acetylene and nitrogen gas to invest, acquire, hold and deal in shares, stock, debenture, debenture stock, bonds, obligations and securities issued or guaranteed. The company is also in the process of acquiring ASSM and right shares will be issued to the existing shareholders after the takeover process is completed.
During the year, the company also increased its authorized capital by Rs.11 billion in 2025. In 2025, BAPL’s administrative expense worth Rs. 52.94 million included a fee of Rs.43.86 million paid to SECP to increase the company’s share capital. During the year, the company also paid advance of Rs.3174.11 million to ASSM for the project completion and working capital. This amount has been recorded as a current asset.
This pushed up the company’s current ratio from 4.69 in 2024 to 592.71 in 2025. The amount advanced to ASSM was provided to BAPL by Weavers Pakistan (Private) limited, the major shareholder of BAPL, for the subscription of right shares. With no revenue, negligible other income and hefty administrative expense, the company recorded net loss of Rs.55.049 million in 2025, up 138.90 percent year-on-year.
Recent Performance (9MFY26)
During the nine-month period of the ongoing fiscal year, BAPL recorded a marginal dividend income of Rs.1073. Conversely, it incurred unrealized loss worth Rs.18.74 million on the revaluation of investment and realized loss worth Rs. Rs.26.97 million on the sale of investment. Administrative expense also surged by 20.89 percent in 9MFY26 on the back of higher payroll expense as well as vehicle running and travelling expense incurred during the period.
Administrative expense was largely offset by other income of Rs.3.904 million recognized during the period which was due to liabilities written back during the period. This was against the other expense of Rs.0.73 million recorded in 9MFY25 which was due to written off recorded.
BAPL registered operating loss of Rs.47.74 million in 9MFY26, up 750.29 percent year-on-year. Finance cost mounted by 743.89 percent in 9MFY26 due to loan obtained from an associated company, Weavers Pakistan (Private) limited. BAPL posted net loss of Rs.54.587 million in 9MFY26. Up 749.50 percent year-on-year. This translated into loss per share of Rs.7.28 in 9MFY26 versus loss per share of Rs.0.86 recorded in 9MFY25.
Future Outlook
On July 31, 2025, BAPL was restored from non-compliant to normal counter of PSX as it resumed its operations. The company is in the process of issuing 600 million ordinary shares other than right issue for the acquisition of around 51 million shares of ASSM which are currently held by the sponsors of ASSM. After the issue is completed ASSM will become the subsidiary of BAPL. After that, BAPL will also issue 599.99 million shares by way of right. The acquisition of ASSM will boost the dividend income of BAPL, thereby buttressing its financial performance.
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