Amreli Steels Limited’s board has approved the direct issuance of up to 40 mln ordinary shares at PKR 25 each, raising PKR 1 bln (USD 3.5 mln) to strengthen working capital and support its credit restructuring plan.
The shares, priced at PKR 10 face value plus a PKR 15 premium, will represent 13.47pct of existing paid-up capital and be issued exclusively to existing sponsor Shayan Akberali. He has committed to fully subscribing in cash, reaffirming the sponsor family’s confidence in the company’s outlook.
The company initially sought to raise funds through a rights issue, but the Securities and Exchange Commission of Pakistan (SECP) disallowed it due to ongoing restructuring and a related Credit Information Bureau report. As a result, the direct issuance was chosen to meet equity injection requirements set by lenders.
Proceeds will be used to bolster working capital, enhance cash flow generation, and ensure operational stability, measures the company said will ultimately safeguard stakeholder and minority shareholder interests.
Amreli Steels maintains an annual production capacity of 600,000 tons for billets and a rebar manufacturing capacity of 605,000 tons per annum.
1 USD / 283.2 PKR
