SECP approves Dewan Cement's issuance of 60 million shares to Dewan Yousaf Farooqui

The Securities and Exchange Commission of Pakistan (SECP) has approved Dewan Cement Limited's proposal to issue 60 million ordinary shares to Dewan Muhammad Yousaf Farooqui through a mechanism other than a right offer.

According to an approval issued by the Commission's competent authority, Commissioner (SMD), the company has been permitted to issue the shares under Section 83(1)(b) of the Companies Act, 2017 and the Companies (Further Issue of Shares) Regulations, 2020.

The approval follows a special resolution passed by shareholders at the company's Extraordinary General Meeting held on January 26, 2026.

Under the arrangement, Dewan Cement will issue 60,000,000 ordinary shares at a par value of ₨10 each, amounting to a total value of ₨600 million.

The shares will be issued to Dewan Muhammad Yousaf Farooqui against an outstanding interest-free loan previously provided by him to the company.

SECP has directed that the shares be issued in book-entry form within 60 days of the approval date. The company must also notify both the Commission and the Pakistan Stock Exchange within seven days after the issuance is completed.

As part of the approval conditions, Dewan Muhammad Yousaf Farooqui will be required to retain the shareholding arising from the transaction for the period prescribed under applicable regulations.

The Commission further stated that Dewan Cement and the acquirer must ensure compliance with all requirements of the Securities Act, 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.

The transaction will convert ₨600 million of debt owed by the company into equity and increase Dewan Muhammad Yousaf Farooqui's shareholding in Dewan Cement.