Karachi: EFU Life Assurance Limited has unveiled plans to bolster its capital base through a right issue, as approved by the company's Board of Directors in a meeting held on August 21, 2026. The initiative aims to issue an additional 45 million ordinary shares at a price of PKR 10 each, aggregating to a total of PKR 450 million.

The right issue, constituting approximately 42.857% of the existing paid-up capital, will offer 42.857 right shares for every 100 ordinary shares held by existing shareholders. This strategic move is primarily targeted at meeting the amended Minimum Capital Requirement (MCR) of PKR 1.5 billion, as stipulated by the Insurance Rules, 2017.

According to information available from the Pakistan Stock Exchange (PSX), this capital raising effort is designed to enhance EFU Life’s solvency position and support the sustainable growth of its insurance business. By strengthening the company’s financial foundation, EFU Life aims to improve its profitability and provide better returns to shareholders.

The company reassured investors by highlighting that the right issue will be conducted at a price lower than the current market value of its shares, thereby minimizing investment risk. Substantial shareholders have committed to subscribing to their respective entitlements, and any remaining shares will be fully underwritten in compliance with applicable regulations.

The Board of Directors emphasized the importance of this right issue, noting that all necessary regulatory approvals will be sought from the Securities and Exchange Commission of Pakistan (SECP) and PSX. The closure dates for the share transfer books, which will determine shareholder entitlements, will be announced in due course following the finalization of the offering documents.

As the company moves forward with this capital raising exercise, it remains confident in its market position and ability to mitigate associated business risks.