Lahore: Dost Steels Limited's Board of Directors has authorized a substantial issuance of right shares in a recent meeting held on June 23, 2025. The board has resolved to increase the company's existing paid-up share capital by 444.70 million ordinary shares. This decision, pending necessary corporate, legal, and regulatory approvals, aims to fund the installation of a melting furnace and support working capital needs.
The board's resolutions empower Mr. Naim Anwar, Director of the Company, to execute necessary documents and agreements related to a settlement with a bank. Additionally, the board plans to convene an Extraordinary General Meeting, with the date to be announced later.
The newly authorized right shares will be offered at par value of PKR 10 per share, amounting to a total expected capital inflow of PKR 4.45 billion. This move represents a 100% increase in the existing paid-up capital, with shareholders entitled to subscribe to 100 right shares for every 100 ordinary shares owned as of the book closure date.
According to information available from the Pakistan Stock Exchange (PSX), the proceeds from this issuance are earmarked for the installation and commissioning of a melting furnace. This is expected to reduce raw material costs by enabling in-house billet production, thereby improving profit margins. The project aims to enhance operational efficiency and bolster the company's long-term sustainability and competitive standing.
While the right shares are priced close to the current market value, reducing associated risks, the board has ensured that any unsubscribed shares will be fully underwritten. Major shareholders and directors have committed to subscribing to their respective entitlements.
The board has also authorized any two directors to finalize required documents in compliance with the Companies Act, 2017, while appointing advisors and setting underwriting terms. This comprehensive rights issue strategy is designed to strengthen the financial position of Dost Steels Limited and deliver increased value to its shareholders.