The Board of Directors of Amreli Steels Limited has approved the issuance of up to 40 million ordinary shares for cash consideration at Rs25 per share, aggregating to Rs1 billion.
The issuance, to be made other than by way of a rights issue, was approved during the company’s board meeting held on October 3, 2025, read a notice to the Pakistan Stock Exchange (PSX) on Monday.
As per the notice, new shares—priced at Rs15 premium per share—will be subscribed entirely by Shayan Akberali, one of Amreli Steels’ existing sponsors, who currently holds a 17.09% stake. Following the proposed transaction, the new shares will represent up to 13.47% of the company’s existing paid-up capital and approximately 11.87% of the post-issuance capital.
“The proceeds from the issue will be applied towards meeting the working capital requirements of the company and facilitate the credit restructuring.
“Strengthening the working capital position will enhance the company’s ability to generate operating cash flows, thereby supporting ongoing business operations and enabling capacity utilisation. The continuity and stability of operations will ultimately safeguard the interests of all stakeholders, including the members of the company, and will be particularly beneficial to minority shareholders,” read the notice.
Amreli Steels informed that it had initially planned to raise equity through a rights issue. However, the Securities and Exchange Commission of Pakistan (SECP) advised that the company “is not permitted to undertake a rights issue due to the restructuring process and resultant report issued by the Credit Information Bureau of the State Bank of Pakistan”.
Consequently, the company opted for a direct issuance to its sponsor. Amreli Steels emphasised that the proposed capital injection demonstrates the sponsor family’s commitment to the company’s stability and future growth.
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