Amreli Steels to Raise Rs. 1 Billion Through Direct Share Issuance

Amreli Steels Limited has announced plans to raise up to Rs. 1 billion by issuing 40 million new ordinary shares directly to one of its key sponsors, Shayan Akberali, bypassing a traditional rights issue. The move, approved by the company’s Board of Directors on October 3, 2025, is aimed at strengthening Amreli Steels’ working capital and supporting its ongoing financial restructuring. According to a notice sent to the Pakistan Stock Exchange, the new shares will be issued at Rs. 25 per share, including a premium of Rs. 15 per share. This price is higher than the company’s three-month average market price of Rs. 23.48 and the latest closing price of Rs. 24.88. The direct issuance will represent up to 13.47% of the company’s current paid-up capital and about 11.87% of the post-issuance capital. The company originally intended to raise funds through a rights issue, but was informed by the Securities and Exchange Commission of Pakistan (SECP) that this was not permitted due to ongoing restructuring and a related report from the State Bank’s Credit Information Bureau. As a result, Akberali, who already holds a 17.09% stake in Amreli Steels, has agreed to subscribe to the entire new issue, injecting the required equity to meet commitments set by banks and financial institutions. Proceeds from the share issuance will be used to bolster Amreli Steels’ working capital, facilitate the credit restructuring process, and enhance the company’s ability to maintain stable operations and capacity utilization. The company emphasized that this move will benefit all stakeholders, including minority shareholders, by supporting business continuity and long-term growth. The new shares will rank equally with existing shares in all respects. The issuance is subject to shareholder and regulatory approvals, including from the SECP, as required under the Companies Act, 2017 and relevant regulations.