ISLAMABAD: The Lahore Electric Supply Company (Lesco) has decided to increase its authorised capital by 300 percent to Rs200 billion from Rs50 billion, sources close to Chairman Lesco Board told Business Recorder.
In this regard, in addition to routine business, the company’s general body at the Annual General Meeting (AGM) scheduled for February 6, 2026, will also consider special business relating to the enhancement of Lesco’s authorised share capital from Rs50 billion to Rs200 billion.
The proposed capital will be divided into 20 billion ordinary shares of Rs10 each, with such rights, privileges, conditions, or restrictions as the company may determine through a special resolution, as permitted under the law.
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According to the company, the increase in authorised capital has been necessitated to accommodate the increase in the Government of Pakistan’s equity in Lesco, in view of the prevailing deposit for shares amounting to Rs149.51 billion as of June 30, 2025.
Following the proposed increase, Clause V of the company’s Memorandum of Association will be replaced to reflect the revised authorised share capital.
The amended clause will state that the authorised share capital of the company is Rs200 billion, divided into 20 billion ordinary shares of Rs10 each, with the power to increase or reduce the capital, divide shares into various classes, and attach or modify rights, privileges, or conditions in accordance with applicable laws.
Rights among different classes of ordinary shares, if any, relating to profits, voting, and other benefits, shall remain strictly proportionate to the paid-up value of shares.
For representation of 673,800,863 shares registered in the name of the President of Pakistan, Lesco has sought a proxy under Article 45 of its Articles of Association. Accordingly, the proxy will be granted in favour of either Muhammad Ramzan, Chief Executive Officer of Lesco, or Amer Zia, Chairman of the Board of Directors, to exercise voting rights in respect of these shares at the forthcoming AGM.
The chief executive officer and company secretary of Lesco will be authorised, jointly and severally, to take all necessary steps, execute relevant documents, and complete all legal and corporate formalities, including filing requisite documents with the Securities and Exchange Commission of Pakistan (SECP) and the Registrar of Companies, to give effect to the resolutions.
Sources further stated that the Finance Division had transferred Rs341.96 billion to Pakistan Electric Power Company’s (Pepco) account through the State Bank of Pakistan on June 27, 2013, for settlement of power sector circular debt payable to independent power producers (IPPs) and other entities.
On the basis of this arrangement, Pepco allocated Rs37.97 billion to Lesco, against which the Central Power Purchasing Agency–Guaranteed (CPPA-G) issued a credit advice to the company as an adjustment on account of the government’s equity or investment against settlement of circular debt.
Lesco accounted for this amount as equity based on the opinion of its legal directorate. Subsequently, during the year ended June 2019, the Government of Pakistan made payments against markup on loans obtained for circular debt settlement.
Based on this arrangement, the Ministry of Energy allocated Rs886 million to Lesco, against which CPPA-G issued a debit note to the company as an adjustment on account of the government’s equity or investment.
The deposit for shares has been increasing on an annual basis. Last year, the deposit for shares stood at Rs103.63 billion.
During the year ended June 30, 2025, CPPA-G issued credit note advices to Lesco amounting to Rs45.88 billion as adjustments on account of the government’s equity or investment. Consequently, the total deposit for shares has reached Rs149.51 billion.
Copyright Business Recorder, 2026