Karachi: Reliance Cotton Spinning Mills Limited announced on 18 March 2025 that the Honourable High Court of Sindh at Karachi has sanctioned the Scheme of Arrangement related to the corporate reorganization of a portion of the company's shareholdings. This approval follows an extraordinary general meeting held on December 27, 2022, where the requisite majority of shareholders endorsed the scheme.

The court's decision, issued on March 17, 2025, pertains to the petition identified as J. C. M. No. 45 of 2022. The approval comes as a significant development for Reliance Cotton Spinning Mills Limited, marking the culmination of a process initiated with a disclosure made on November 29, 2022. The scheme was authorized under Sections 279 to 282 and 285 of the Companies Act, 2017, which governs corporate restructuring processes in Pakistan.

According to information available from the Pakistan Stock Exchange (PSX), the arrangement involves a reorganization of the shareholdings of the company's sponsors. This structural change is expected to streamline management and potentially impact the company's market operations. The PSX, which falls under the designated market category, was informed to notify the TRE Certificate holders about this development.

A certified copy of the court's order has been provided to the relevant stakeholders, ensuring compliance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the Pakistan Stock Exchange Limited. The company's adherence to these regulations underscores its commitment to maintaining transparency and fulfilling its obligations to shareholders and regulatory bodies.