Karachi: Dewan Cement Limited has been granted approval by the Securities & Exchange Commission of Pakistan (SECP) to issue 60,000,000 ordinary shares at a par value of Rs. 10 per share, totaling Rs. 600 million. This issuance, approved under Section 83(1)(b) of the Companies Act, 2017, is structured to settle an interest-free loan provided by Mr. Dewan Muhammad Yousaf Farooqui, according to a report dated June 1, 2026.

The approval, based on a special resolution passed by the shareholders during an Extra Ordinary General Meeting on January 26, 2026, stipulates that the shares must be issued in book entry form within 60 days from the SECP’s approval. Furthermore, Dewan Cement Limited is required to notify both the Commission and the securities exchange about the share issuance within seven days of the event.

According to information available from the Pakistan Stock Exchange (PSX), the shares are not offered as a right to existing shareholders but are allocated specifically to Mr. Farooqui as part of the loan settlement arrangement. Additionally, Mr. Farooqui is mandated to retain the shares for a period as specified in the Companies (Further Issue of Shares) Regulations, 2020.

The SECP’s approval comes with a disclaimer that it is contingent upon the documents and information submitted by Dewan Cement Limited, and the Commission assumes no responsibility for any agreements executed between the issuer and the recipient of the shares. Furthermore, the company and Mr. Farooqui must ensure compliance with any applicable provisions of the Securities Act, 2015, and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, should the issuance trigger any regulatory requirements.

Dewan Cement Limited operates within the designated market category of construction materials, and this strategic financial maneuver aims to address its financial obligations while reinforcing its ownership structure.