Dandot Cement plans conversion of ₨2.47 billion loans into equity

Dandot Cement Company Limited has approved a plan to convert loans worth approximately ₨2.47 billion from three related parties into equity through the issuance of up to 121.4 million ordinary shares, subject to shareholder and regulatory approvals.

In a notice submitted to the Pakistan Stock Exchange (PSX), the company said its board had adopted a series of resolutions under Section 83 of the Companies Act, 2017, to issue shares other than by way of a right issue in exchange for outstanding loans.

The largest proposed conversion relates to a loan of ₨1.529 billion provided by its subsidiary Calicom Industries (Private) Limited. Dandot Cement plans to issue up to 76 million ordinary shares against the loan at the closing market price on the day preceding shareholders' book closure for the Extraordinary General Meeting (EOGM), plus an additional premium of ₨2 per share.

The board also approved the conversion of a ₨735 million loan from Digi Metal World Pakistan (Pvt.) Limited to up to 37 million ordinary shares. These shares will likewise be issued at the closing market price before the book closure date, along with a premium of ₨2 per share.

In addition, Dandot Cement approved the conversion of a ₨210 million loan received from Tetra Engineering (Private) Limited into 8.4 million ordinary shares. The shares will be issued at ₨25 per share, comprising a par value of ₨10 and a premium of ₨15.

Collectively, the proposed transactions involve the conversion of loans amounting to approximately ₨2.474 billion into equity and the issuance of up to 121.4 million ordinary shares.

To obtain shareholder approval, the company has convened an Extraordinary General Meeting for June 24, 2026, at 9:00 am at its registered office in Lahore.

The board also authorised the Chief Executive and Company Secretary to submit applications to the Securities and Exchange Commission of Pakistan (SECP) for approval of the proposed share issuances and to complete all legal and regulatory formalities required to implement the resolutions.

The proposed debt-to-equity conversion is aimed at settling loans owed to the three related parties through the issuance of ordinary shares instead of cash repayment.

Dandot Cement is a public limited company incorporated in Pakistan. The company started its production in 1983 and has been engaged in the production and marketing of cement. The company is a subsidiary of Calicom Industries (Pvt.) Limited.