Lahore: Dandot Cement Company Limited has received the green light from the Securities & Exchange Commission of Pakistan to issue new ordinary shares to two associated companies, converting outstanding interest-free loans into equity. This move, formalized through an application under Section 83(1)(b) of the Companies Act, 2017, represents a strategic financial restructuring for the company.

The decision, dated October 13, 2026, follows a special resolution passed by the shareholders during an Extra Ordinary General Meeting held on June 24, 2026. According to the details submitted to the Commission, Dandot Cement will issue a total of 42,396,300 shares in exchange for loans amounting to Rs. 945 million.

Digital World Pakistan (Private) Limited and Tetra Engineering (Private) Limited, the associated companies, will receive shares valued at Rs. 21.62 and Rs. 25.00 per share, respectively. The distribution includes 33,996,300 shares for Digital World Pakistan in exchange for a Rs. 735 million loan and 8,400,000 shares for Tetra Engineering for a Rs. 210 million loan.

According to information available from the Pakistan Stock Exchange (PSX), Dandot Cement is navigating this share issuance under specific regulatory conditions. The shares must be issued in book entry form within 60 days of approval, and the company is required to notify the Commission and the securities exchange within seven days of issuance. Additionally, the associated companies must retain their new shareholdings for a period specified in the regulations.

The issuance is contingent upon several conditions, including the requirement for Dandot Cement to submit a report concerning the shares held in a blocked status within the Central Depository Company (CDC) account immediately after issuance. The Commission has clarified that its approval is based on the documentation provided and does not imply any responsibility for agreements between the company and the share recipients.

Furthermore, should the share issuance trigger any provisions of the Securities Act, 2015, or the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, Dandot Cement and the acquiring companies must ensure compliance with all regulatory obligations.