Waves Home Appliances Limited will raise its paid up capital by issuing 150,015,772 right shares, according to a decision taken by the company’s Board of Directors at a meeting held on July 23, 2026. The right shares, carrying a face value of Rs10 each, will be offered to existing shareholders in a ratio of 56 shares for every 100 shares held, equivalent to 56 percent of the company’s existing paid up capital. The shares will be issued at par value of Rs10 each, without any premium attached.
Following the issue, the company’s paid up share capital will increase from Rs2,678,853,070 to Rs4,179,010,790, with the new shares ranking pari passu with existing ordinary shares in all respects. Book closure dates to determine shareholder entitlement will be announced separately once the offer document is finalized, in line with applicable regulations governing further share issues. The right issue is intended to strengthen the company’s financial position and support its medium term operational and growth objectives, with proceeds directed toward broadening its product portfolio, funding working capital requirements, and reducing high cost liabilities, including a loan payable to its holding company, Waves Corporation Limited.
Of the total proceeds of Rs1.5 billion, about Rs800.16 million, or 53.3 percent, will go toward working capital needs tied to the company’s expansion in the air conditioner market, along with continued investment in its deep freezer and refrigerator segments and reduced reliance on bank borrowing. The company noted it has recently re-entered the air conditioner market and intends to expand further in that segment. The remaining Rs700 million, or 46.7 percent, will be used for partial repayment of the loan owed to Waves Corporation Limited. Company officials said the right issue is expected to strengthen its working capital base, lower financing costs, and improve its gearing ratio, while supporting long term value creation for shareholders.
On potential risks, the company flagged the possibility of undersubscription given that the offer is priced at par, which is higher than the current market price. Substantial shareholders and directors have confirmed they will subscribe to their respective entitlements, while the remaining portion will be underwritten, with the holding company committing to subscribe to any unsubscribed portion in excess of its own entitlement under the Companies Act, 2017. The board, after considering the company’s break up value, discounted cash flow valuation, and long term business prospects, determined that the issue price of Rs10 per share is fair and reasonable, with no minimum subscription amount prescribed for the offering.
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