Pakistan
The Board of Directors of Amreli Steels Limited has approved the issuance of up to 40 million ordinary shares at PKR 25 per share, aggregating PKR 1 billion, through a direct issuance for cash consideration, other than by way of a rights issue.
According to the company statement, the issuance includes a premium of PKR 15 per share, and represents about 13.47% of the existing paid-up capital and approximately 11.87% of the post-issuance capital.
As a sign of commitment, Mr. Shayan Akberali, one of the existing sponsors of the company holding 17.09% shareholding, will subscribe to the entire issuance. The proceeds will be used to strengthen Amreli Steels’ working capital position, support credit restructuring, and enhance capacity utilization and long-term growth.
The board noted that the company originally planned to raise equity through a rights issue. However, the Securities and Exchange Commission of Pakistan (SECP) advised that under the Companies (Further Issue of Shares) Regulations, 2020, Amreli Steels could not undertake a rights issue due to its ongoing restructuring process and related report by the Credit Information Bureau of the State Bank of Pakistan.
The direct issuance will therefore allow the company to meet its financial commitments under the restructuring terms agreed with banks and financial institutions.
The issue price of PKR 25 per share exceeds the three-month average market price of PKR 23.48, while the latest market price as of October 2, 2025, stood at PKR 24.88. The break-up value per share, based on the audited accounts for the year ended June 30, 2025, is PKR 35.18.
The new shares will rank pari passu with existing shares in all respects. The proposal remains subject to requisite corporate and regulatory approvals, including from the shareholders and the SECP, under Section 83(1)(b) of the Companies Act, 2017, and Regulation 5 of the Companies (Further Issue of Shares) Regulations, 2020.
This announcement was made in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the Pakistan Stock Exchange Limited. – ER News Desk
