Karachi: Sapphire Fibers Limited (SFL) has successfully completed its merger with Reliance Cotton Spinning Mills Limited (RCSML), resulting in a significant increase in its paid-up share capital. This development comes after the High Court of Sindh approved the Scheme of Arrangement for the amalgamation of the two companies, with a detailed announcement made on June 23, 2026.

The merger was facilitated through the issuance of 4,199,353 ordinary shares by SFL to the shareholders of RCSML. This issuance was confirmed by the company's statutory auditors, who provided a certificate of compliance with the Central Depository Company of Pakistan Limited (CDC) Regulations. According to the auditors' certification, the shareholding of SFL in RCSML, amounting to 153,618 shares, was canceled as part of the merger process.

According to information available from the Pakistan Stock Exchange (PSX), the paid-up share capital of Sapphire Fibers Limited has increased significantly due to this merger. Prior to the merger, the total number of shares stood at 20,671,875. Following the issuance of new shares, the paid-up share capital now amounts to 24,871,228 shares, reflecting a very large or significant move in the company's capital structure.

The merger was executed with a swap ratio of 0.40 shares of SFL for every share of RCSML, leading to the issuance of 4,199,353 new shares. This strategic alignment aims to enhance the market position of Sapphire Fibers Limited within the textile sector, a designated market category.

The successful amalgamation is expected to fortify SFL's operational capabilities and market reach, leveraging the resources and expertise of both entities. With this significant increase in share capital, SFL is poised to expand its influence and operations in the textile industry.