Yousaf Weaving to issue 36.35 million shares to CEO against his outstanding loan

Yousaf Weaving Mills Limited has received approval from the Securities and Exchange Commission of Pakistan (SECP) to issue 36.35 million ordinary shares to its chief executive against an outstanding loan, according to a notice submitted to the Pakistan Stock Exchange on Tuesday.

The company will issue 36,352,500 shares at a par value of Rs10 each, amounting to Rs363.5 million, through a mechanism other than a right offer. The shares will be issued to Director and CEO Khawaja Muhammad Nadeem in settlement of his outstanding interest-free loan to the company.

The approval was granted by the SECP’s Commissioner (SMD) following a special resolution passed by shareholders at an extraordinary general meeting held on March 9, 2026.

Under the terms of the approval, the shares must be issued in book-entry form within 60 days. The company is also required to notify the SECP and the exchange within seven days of issuance.

The regulator has further directed that Khawaja Muhammad Nadeem will retain the shareholding acquired through this transaction for a period specified under applicable regulations.

The approval is based on documents submitted by the company, with the SECP stating it does not assume responsibility for agreements between the company and the recipient of the shares.

The transaction is part of the company’s capital restructuring and reflects the conversion of outstanding liabilities into equity under the regulatory framework for further issue of shares.