Karachi: Premier Insurance Company Limited has announced a significant increase in its paid-up share capital through the issuance of additional right shares. This decision was resolved during a Board of Directors meeting held on September 24, 2026, aiming to enhance the company’s financial standing.

The insurance firm plans to issue 20,226,042 ordinary shares as right shares, each with a face value of Rs 10. These shares are to be offered to existing members at a ratio of 40 right shares for every 100 ordinary shares held. The move will increase the company’s share capital from Rs 505.65 million to Rs 707.91 million. The right issue is priced at Rs 10 per share, aggregating to a total of Rs 202.26 million.

The rationale behind this capital raise is to meet the Minimum Capital Requirement set forth by recent amendments to the Insurance Rules, 2017, as specified in S.R.O. 310(1)/2025. The proceeds from this issue will be directed towards strengthening the company’s working capital, which is expected to positively impact profitability and enhance shareholder value.

According to information available from the Pakistan Stock Exchange (PSX), this right issue will result in a 40% increase in the existing paid-up capital, reflecting a big move in the company's financial structure. The substantial shareholders have committed to subscribing to their respective entitlements, ensuring no risk of undersubscription. The remaining shares will be fully underwritten, adhering to regulatory requirements.

The company also emphasized that no premium or discount is applicable since the shares are being offered at their par value. The resolution includes provisions for the fractional entitlements, which will be consolidated and sold on the PSX, with net proceeds distributed to entitled members.

Premier Insurance’s management, led by CEO Sharik Bashir, along with directors and the CFO, is authorized to finalize and file necessary documents with the Securities and Exchange Commission of Pakistan and the PSX. The company is set to engage consultants and underwriters to facilitate the right issue process, ensuring compliance with all regulatory standards.