Dewan Farooque Motors Likely to Convert Pending Loans Into Equity

Dewan Farooque Motors Limited (PSX: DFML) is likely to approve the conversion of outstanding loans from Sponsor and Associated Company Dewan Motors (Private) Limited into equity at the extraordinary General Meeting scheduled for 27 August 2024. The conversions would require further issuance of shares other than rights to the Sponsor and Associated Company under Section 83 of the Companies Act 2017, DFML said in a notice to the main bourse on Wednesday. If the resolution is passed, the company will issue 161 million ordinary shares at Rs. 10/- each amounting to Rs. 1.61 billion by way of otherwise than rights. Dewan Farooque Motors Limited was incorporated in Pakistan on December 28, 1998, as a public limited company. The principal activity of the Company is assembling, progressive manufacturing, and sale of vehicles in Pakistan. At the time of filing, DFML’s scrip at the bourse was Rs. 42.17, up 0.62 percent or Rs. 0.26 with 3.8 million shares on Wednesday.