Lahore: Tariq Corporation Limited announced on May 25, 2026, a significant move to increase its paid-up share capital through the issuance of additional ordinary shares. The decision, approved by the company's Board of Directors, involves a rights issue of 15,793,750 new ordinary shares at a price of Rs. 20 per share, inclusive of a Rs. 10 premium per share. This issuance is set at a ratio of approximately 23.86 ordinary shares for every 100 shares held.

This strategic financial decision aims to meet the company's rising working capital demands, enhancing profitability and potentially boosting shareholder returns. The move aligns with Sections 96 and 131 of the Securities Act, 2015, paragraph 5.6.1(a) of the Pakistan Stock Exchange (PSX) Rule Book, and Regulation 3(1)(i) of the Companies (Further Issue of Shares) Regulations, 2020.

According to information available from the Pakistan Stock Exchange (PSX), the quantum of the rights issue represents 23.86% of the existing paid-up capital. The total size of this issuance aggregates to PKR 315.88 million. The new shares will rank pari passu with the existing ordinary shares of the company.

The proceeds from this issuance will primarily address the company's working capital requirements, which is expected to have a positive impact on profitability and, consequently, shareholder returns. The right issue price is strategically set below the last six-months average market price, mitigating significant investment risks. The directors have committed to subscribing to their respective entitlements, and the remaining portion will be fully underwritten.

The company has justified the premium on the new shares by considering the breakup value and current market price of its shares, ensuring alignment with prevailing market practices. The exact dates for the closure of the share transfer books to determine entitlement will be announced shortly, following the finalization of the right share-offer documentation.