Lahore: Kohinoor Textile Mills Limited has announced a significant restructuring of its share capital, with the Board of Directors recommending a stock split aimed at enhancing market liquidity and widening investor participation. The move, disclosed in accordance with Clause 5.6.1 of the PSX Regulations, was made public as the company prepares for its Extraordinary General Meeting (EOGM) scheduled for August 15, 2025, at its Registered Office in Lahore.
The Board has proposed that the company's ordinary shares be subdivided by reducing the face value from Rs. 10 to Rs. 2 per share. This stock split will result in a conversion ratio of 5 shares for every 1 share currently held. In conjunction with this, an amendment to Clause V of the Company's Memorandum of Association will be made to reflect the proposed changes.
The initiative is designed to make Kohinoor Textile Mills shares more accessible to small and retail investors, encouraging broader participation in the equity market. According to information available from the Pakistan Stock Exchange (PSX), the stock split is expected to lead to heightened trading activity and improved market liquidity. This strategic decision underscores the company's confidence in its long-term growth trajectory, as evidenced by a big move in its share price over the past year.
Pending shareholder approval at the EOGM, the company's existing subscribed and paid-up capital, currently consisting of 269,299,456 ordinary shares of Rs. 10 each, will be restructured into 1,346,497,280 ordinary shares of Rs. 2 each. Consequently, eligible shareholders will receive 5 ordinary shares for every 1 share held, with the date of determination to be announced after the EOGM.
Furthermore, the Share Transfer Books of the Company will be closed from August 08, 2025, to August 15, 2025, inclusive of both days. Share transfers completed by the close of business on August 07, 2025, at the Share Registrar in Lahore, will be considered timely for the purpose of attending and voting at the EOGM.
The company has notified the TRE Certificate Holders of the Exchange regarding these developments, signaling a new phase in its market engagement strategy.