Millat Tractors shareholders approve share split, ₨1.5 billion guarantee for e-bike project

Shareholders of Millat Tractors Limited (MTL) have approved a subdivision of the company’s share capital and authorised the issuance of corporate guarantees and other security arrangements of up to ₨1.5 billion to support the e-bike project of its subsidiary, Millat Industrial Products Limited (MIPL).

According to a notice submitted to the Pakistan Stock Exchange (PSX) on Tuesday, the resolutions were passed during an Extraordinary General Meeting (EOGM) held on June 5, 2026, at the company’s registered office in Lahore. The shareholders first confirmed the minutes of the company’s 62nd Annual General Meeting.

Under a special resolution passed pursuant to Section 85 of the Companies Act, 2017 and Article 34 of the Articles of Association, shareholders approved the subdivision of the company’s existing capital structure. As a result, each ordinary share with a face value of ₨10 will be split into two ordinary shares with a face value of ₨5 each, without any change in shareholder rights and privileges.

Following the approval, the company’s authorised capital will be restructured from 530 million ordinary shares of ₨10 each to 1.06 billion ordinary shares of ₨5 each.

Similarly, the issued and paid-up capital of the company will increase in terms of the number of shares from 199,515,947 ordinary shares of ₨10 each to 399,031,894 ordinary shares of ₨5 each.

Shareholders also approved amendments to Clause V of the Memorandum of Association and Article 5 of the Articles of Association to reflect the revised capital structure. Under the amended provisions, the company’s authorised capital will remain ₨5.3 billion but will be divided into 1.06 billion ordinary shares of ₨5 each instead of 530 million shares of ₨10 each.

The resolution further authorised the Chief Executive Officer, Chief Financial Officer and Company Secretary, either jointly or individually, to undertake all necessary legal and regulatory formalities required to implement the stock split. These include determining the effective date, announcing book closure periods, issuing or crediting new physical and electronic shares, and completing all corporate and regulatory requirements.

In a separate special resolution, shareholders approved the issuance of a corporate guarantee, letter of comfort and other security arrangements in favour of lenders financing the e-bike project of Millat Industrial Products Limited, a subsidiary of Millat Tractors Limited.

The approval, granted under Section 208 of the Companies Act, 2017 and subject to applicable requirements of the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP) and Pakistan Stock Exchange, allows MTL to provide support of up to ₨1.5 billion for financing the project.

According to the resolution, the aggregate contingent liability of Millat Tractors under these arrangements cannot exceed ₨1.5 billion at any point in time.

The company stated that the financing support would be used solely for the e-bike project and would remain subject to compliance with all applicable laws, regulations and corporate governance requirements.

The approved framework also requires counter-indemnification by MIPL for any liabilities or payments incurred by MTL under the security arrangements. In addition, Millat Tractors will charge MIPL an arm’s-length guarantee commission or fee.

Shareholders authorised the Chief Executive Officer, Chief Financial Officer and Company Secretary to negotiate, finalise, execute and register all necessary agreements and documents related to the financing arrangements, including disclosures to PSX and SECP.