Lahore: The Board of Directors of Apna Microfinance Bank Limited (AMBL) has announced a significant corporate financial restructuring, including an increase in the bank's authorized capital from Rs. 5 billion to Rs. 7.5 billion, in a move aimed at strengthening its financial base. The announcement was made during the 117th meeting of the board, held on August 7, 2024, at the bank's head office in Lahore and through video conferencing.
According to information available from the Pakistan Stock Exchange (PSX), this strategic decision will involve amending the Memorandum and Articles of Association of the bank, pending approval from the shareholders and the Securities and Exchange Commission of Pakistan (SECP). The proposed changes are poised to enhance the bank's ability to raise funds and provide a more robust platform for future growth and stability.
Additionally, the Board has proposed to escalate the paid-up share capital of the bank by issuing an additional 135,039,028 ordinary shares, each with a face value of PKR 10. This initiative, classified as an issue of shares by way of an offer other than rights, also awaits the green light from shareholders and regulatory approval from the SECP.
The resolutions passed include calling for an Extraordinary General Meeting (EOGM) on September 4, 2024, to discuss and potentially approve these financial adjustments. The proposed amendments to the Memorandum of Association stipulate that the authorized share capital of AMBL will be Rs.7,500,000,000, divided into 750,000,000 ordinary shares of Rs. 10 each.
In terms of operational readiness, the board has already approved the un-audited accounts for the first quarter ended March 31, 2024, and has appointed M/s. F.D. Registrar Services (SMC-Pvt.) Limited to facilitate the issuance of the new shares.
This financial restructuring reflects AMBL’s proactive stance in ensuring compliance with the Companies Act 2017 and meeting the capital adequacy requirements necessary to bolster its market position and liquidity to fund ongoing and future operations.