Amreli Steels Limited has announced a direct issuance of up to 40 million ordinary shares at a price of Rs25 per share, including a Rs15 premium, aggregating to Rs1 billion.Â
According to a filing at the local bourse on Monday, the Board of Directors approved the move in a meeting held on October 3, 2025, with the aim of strengthening the company’s working capital and supporting its ongoing credit restructuring.
The direct issuance, which does not take the form of a rights issue, will be fully subscribed by Mr. Shayan Akberali, an existing sponsor of the company holding 17.09% equity. The new shares will be issued for cash consideration and will rank pari passu with existing ordinary shares.
The issuance represents approximately 12.47% of Amreli Steels’ current paid-up capital of 297,011,927 shares and around 11.87% of the post-issuance capital. The decision follows guidance from the Securities and Exchange Commission of Pakistan (SECP), which prohibited the company from undertaking a rights issue due to the restructuring process and the related report issued by the State Bank of Pakistan’s Credit Information Bureau.
The company stated that the proceeds will be used to meet working capital requirements, ensure capacity utilization, and maintain stability in operations, ultimately protecting the interests of all stakeholders, including minority shareholders.
According to Amreli Steels, the average market price of the shares over the three months preceding the Board’s decision was Rs23.48, with the latest available price at Rs24.88 per share. The latest audited accounts show a breakup value of Rs35.18 per share for the year ended June 30, 2025.
The proposed direct issuance remains subject to corporate and regulatory approvals, including shareholders’ consent and SECP authorization under Section 83(1)(h) of the Companies Act, 2017, and Regulation 5 of the Companies (Further Issue of Shares) Regulations, 2020.
Amreli Steels emphasized that this step is intended to unlock value, support long-term growth, and facilitate the company’s financial commitments with banks and financial institutions.
