Karachi: EFU Life Assurance Ltd has released its draft Offer Document for a rights issue, as reported on August 25, 2026. The company has decided against seeking public comments on the draft, in alignment with the Companies (Further Issue of Shares) Regulations, 2020. This decision marks a significant step in EFU Life Assurance's capital augmentation efforts.
The financial implications of this rights issue are noteworthy. As of June 30, 2026, the company's authorized share capital remains unchanged at 3.00 billion PKR, while the paid-up capital is set to increase from 1.05 billion PKR to 1.50 billion PKR, representing a 42.86% rise. The total equity is projected to climb from 10.17 billion PKR to 10.62 billion PKR, reflecting a 4.42% increase, which constitutes a moderate move. However, the breakup value per share is anticipated to decrease significantly by 26.90%, from 96.89 PKR to 70.82 PKR.
According to information available from the Pakistan Stock Exchange (PSX), the market share of EFU Life Assurance in the private life insurance sector, based on gross premium and contribution income, remains stable at 33% with no change.
The financial commitments from substantial shareholders and directors have been outlined. EFU General Insurance Ltd, a substantial shareholder, has committed to subscribing to 20,519,173 shares, translating to an investment of 205.19 million PKR. Similarly, Jahangir Siddiqui & Co. Ltd and Syed Salman Rashid have committed to subscriptions of 86.96 million PKR and 42.99 million PKR, respectively, maintaining their current shareholding percentages.
The expenses associated with the rights issue include an underwriting commission of 0.5% on the underwritten portion and a PSX fee of 900,000 PKR, based on the increase in paid-up capital. Other expenses, including legal and consultation fees, are estimated to be up to 3.50 million PKR.
KTrade Securities Limited is named as the underwriter, with an underwriting amount of up to 75 million PKR. The board has resolved to consolidate any fractional rights shares in the name of the Company Secretary under trust, with the sale proceeds to be distributed to shareholders proportionately.
The tentative schedule for the issuance of the Letter of Rights is yet to be finalized, but it will include several key procedures such as the crediting of unpaid rights into the Central Depository Company (CDC) and the dispatch of Letters of Right to physical shareholders.
This comprehensive draft marks a pivotal phase for EFU Life Assurance as it seeks to bolster its capital structure and maintain its market position in the life insurance industry.