Amreli Steels Limited has announced plans to raise up to Rs. 1 billion by issuing 40 million new ordinary shares. The shares will be offered directly to key sponsor Shayan Akberali, bypassing a traditional rights issue.
The company’s Board of Directors approved the plan on October 3, 2025. The proceeds will strengthen working capital and support the ongoing financial restructuring of Amreli Steels.
The new shares will be priced at Rs. 25 per share, including a Rs. 15 premium. 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 issuance will represent approximately 13.47% of the company’s current paid-up capital and 11.87% of post-issuance capital.
Originally, Amreli Steels intended to raise funds through a rights issue. However, the Securities and Exchange Commission of Pakistan (SECP) did not permit this due to ongoing restructuring and a related report from the State Bank’s Credit Information Bureau.
Akberali, who already holds a 17.09% stake in Amreli Steels, has agreed to subscribe to the entire new issue. This equity injection will help the company meet financial commitments with banks and other financial institutions.
The funds raised will be used to improve working capital, facilitate credit restructuring, and support stable operations and optimal capacity utilization. Amreli Steels emphasized that this move will benefit all stakeholders, including minority shareholders, by ensuring business continuity and supporting 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 SECP approval, as required under the Companies Act, 2017 and other relevant regulations.
This direct share issuance reflects Amreli Steels’ ongoing commitment to financial stability, operational efficiency, and long-term shareholder value.
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