Lahore High Court sanctions 90% reduction in WorldCall Telecom’s paid-up capital

LAHORE: The Lahore High Court has sanctioned a 90% reduction in WorldCall Telecom Limited's paid-up ordinary share capital, from Rs49,822,889,000 to Rs4,982,288,900, under an order issued on July 8, 2026.

The court's ruling, passed in case C.O. No. 31942 of 2026 by Judge Khalid Ishaq, confirmed special resolutions approved by WorldCall shareholders at the company's 26th Annual General Meeting on April 30, 2026. The Securities and Exchange Commission of Pakistan (SECP) did not oppose the petition, with its counsel Rumman Bilal stating only that the changes must comply strictly with applicable law.

In a letter to the Pakistan Stock Exchange (PSX) and Central Depository Company (CDC) dated July 27, 2026, WorldCall said the restructuring involves two linked components: the capital reduction itself, and a consequential stock split under which each remaining ordinary share of Rs10 par value will be subdivided into ten shares of Re1 each. The company said the total number of shares held by each shareholder will remain unchanged after the split.

WorldCall said the two steps form one integrated restructuring under the Companies Act, 2017, but will be processed by CDC in two sequential operational stages due to limitations of the Central Depository System (CDS).

The company has fixed Thursday, July 30, 2026 as the Entitlement Date to determine shareholders eligible to participate in the restructuring. Book closure will run from July 31 to August 2, 2026, while trading in WorldCall's shares will be suspended on July 31, 2026, to allow CDC and the National Clearing Company of Pakistan Limited (NCCPL) to complete the processing. Trades executed on the Entitlement Date will be settled on a T+0 basis.

WorldCall said the restructuring will not result in the issuance of new securities, any distribution of assets, or any transfer of value between shareholders, and requested that its shares not trade ex-price as a result of the exercise.

Following the restructuring, the company's authorised share capital will stand revised to Rs21 billion, divided into 19.8 billion ordinary shares of Re1 each and 100,000 preference shares of $100 each, equivalent to Rs1.2 billion at an exchange rate of Rs120 per US dollar.