Lahore: Pakistan Engineering Company Limited has disclosed a significant development in its capital structure with the issuance of right shares aimed at increasing its paid-up share capital. The Board of Directors, in a meeting held on January 20, 2025, approved the issuance of 2,845,123 ordinary shares as right shares. This move is in line with Section 96 of the Securities Act, 2015, and relevant regulations under the Pakistan Stock Exchange Limited.

The right shares, with a face value of PKR 10.00 each, will be offered at a price of PKR 100.00 per share, inclusive of a PKR 90.00 premium. Shareholders will be entitled to one right share for every two ordinary shares held, reflecting a 50% proportion. The exact dates for the closure of the share transfer books, which will determine shareholders' entitlement, will be announced following the finalization of the offer letter in accordance with the Companies (Further Issue of Shares) Regulations, 2020.

According to information available from the Pakistan Stock Exchange (PSX), the company has detailed the purpose of this right issue. The statement includes information on the quantum, size, and price of the issue, along with the intended utilization of proceeds and the benefits expected for the company and its shareholders. The issue is also accompanied by an assessment of risk factors and justification for the premium pricing of the shares.

The resolution for this capital expansion was passed unanimously by the Board and documented in the certified extracts of the meeting held on January 20, 2025. The step signifies a strategic move for Pakistan Engineering Company Limited to strengthen its financial foothold in the market, aligning with the company’s long-term growth objectives.