LAHORE: Real estate tycoon Malik Riaz owned Escorts Investment Bank Limited (EIBL) on Wednesday announced to increase its authorized share capital from Rs2 billion to Rs3 billion for expansion of its business.
In a notification sent to the bourse on Wednesday, Escorts Investment Bank Limited said “the board in its meeting held on Monday March 26, 2018 discussed the need to issue further share capital for the purposes of expanding the business of the Company. The Board members concurred that to achieve this purpose, it was necessary to increase the authorized share capital from PKR 2,000,000.000 (Rupees Two Billion only)/- consisting of 200,000,000 (Two Hundred Million) ordinary shares of PKR 10/- (Rupees Ten) each to PKR 3,000,000,000 (Rupees Three Billion only)/- consisting of 300,000,000 (Three Hundred Million) ordinary shares of PKR 10/- (Rupees Ten) each.”
At start of January this year, Malik Riaz’s Bahria Town entered the mortgage industry fray after successful acquisition of Escorts Investment Bank Limited (EIBL).
And in February, EIBL announced in a notification sent to PSX which said it was compliant with the minimum equity requirement under the existing rules.
Equity of the company on Sept 30, 2017, was Rs208.68 million, which was below the minimum capital requirement of Rs750 million.
Bahria Town acquired a majority stake of 76.254 percent in Escorts Investment Bank Limited (EIBL).
Malik Riaz, the dynamic real estate tycoon in February 2017 had intentioned to purchase 71% shares of Escorts Investment Bank Limited (EIBL) along with its management control.
Drama endured, two days after the PSX notification in a reply SECP had objected saying, “No requisite approval has been obtained by EIB or its sponsors with regard to the potential acquirer/investor.” Furthermore, it communicated that any potential acquirer of a non-banking finance company has to obtain prior approval of the SECP under the NBFC Regulatory Framework, including compliance with the laid down rules and procedures.”
In May 2017, another stock market notification issued informed Bahria Town has been given the go-ahead to acquire 71.16pc stake including managerial control in the Escorts Investment Bank (EIB).
Bahria Town has also separately acquired 100 percent shareholding and management control of Escorts Capital Limited (ECL).
EIBL may not be a well-known name anymore but as part of the once famous ESCORTS Group of Companies from Lahore, it once enjoyed good brand equity.
The group, a multifaceted conglomerate with interests in Hotels, Manufacturing and investment banking was founded by seasoned businessman (Late) Bashir Ahmed. The famous or perhaps infamous Escort gardens host to Lahore’s wildest balls and parties are also owned by the same group.
EIBL shares were trading at Rs33.17, down Rs1.74 (-4.98 percent). KSE-100 index was trading at 45,218.36 points, down 270.50 points (0.59 percent) at time of filing this report.