Karachi: Masood Textile Mills Limited has announced a reduction in its paid-up capital against cumulative preference shares, confirming the redemption of 4.44 million shares during July 2026. The revised paid-up capital stands at 23.06 million shares following the redemption process. This development comes as part of the company's strategic financial management to streamline its capital structure.

On October 13, 2026, a partial cancellation of shares was executed, with 4,440,000 cumulative preference shares being cancelled, as confirmed in a letter from the Central Depository Company of Pakistan Limited. This adjustment reflects in the company's current paid-up capital, now recorded at 23.06 million shares.

According to information available from the Pakistan Stock Exchange (PSX), Masood Textile Mills Limited has taken these steps to manage its financial obligations effectively. The redemption and cancellation aim to align the company's capital structure with its operational and financial objectives.

The company's preference shares are designed to offer cumulative dividends, which are determined based on a floating rate formula linked to the Karachi Inter Bank Offered Rate (KIBOR). These shares also provide rights concerning capital and voting under specific conditions. The company retains the right to redeem outstanding preference shares through a call option, subject to certain regulatory provisions.

Masood Textile Mills Limited's decision to reduce its preference share capital aligns with its broader financial strategies, as outlined in the special resolution passed in 2005. The resolution authorizes the issuance of up to 60 million preference shares to various financial entities, with the objectives of raising finance for working capital needs and funding fixed asset acquisitions. This strategic move, requiring regulatory approvals, highlights the company's ongoing efforts to optimize its financial framework and maintain operational stability.