Amreli Steels Limited (PSX: ASTL) has successfully raised Rs1 billion through the issuance of 40 million ordinary shares at Rs25 per share to its existing sponsor, Mr. Shayan Akberali. Each share carries a nominal value of Rs10, with a premium of Rs15 per share, according to the company’s filing with the Pakistan Stock Exchange released today.
Following the allotment, the company’s paid-up capital has increased to Rs3.37 billion, representing 337,011,427 ordinary shares of Rs10 each. The newly issued shares have been credited to Mr. Akberali’s account in the Central Depository System, completing all statutory and regulatory formalities required under Section 96 of the Securities Act, 2015, and PSX regulations.
The move received formal approval from the Securities and Exchange Commission of Pakistan (SECP), and the company has notified both the Pakistan Stock Exchange and relevant regulatory bodies of the share allotment and capital increase.
This latest capital injection highlights the continued confidence of Amreli Steels’ sponsors in the company’s growth trajectory. It also strengthens the company’s financial position within Pakistan’s steel sector, providing additional resources to support operational expansion and investment in infrastructure.
Analysts note that the allotment to an existing sponsor reflects a strong endorsement of the company’s performance and strategic direction. By boosting its capital base, Amreli Steels is better positioned to meet growing domestic demand, optimize production capacity, and enhance its competitiveness in both local and international markets.
The transaction is part of broader industry trends where steel companies are leveraging internal sponsor support to maintain liquidity, fund projects, and navigate sectoral challenges, including fluctuating raw material prices and demand cycles.
By aligning with regulatory requirements and ensuring transparent reporting to the PSX and SECP, Amreli Steels continues to demonstrate adherence to corporate governance standards. This approach reinforces investor confidence and contributes to overall market stability.
With this infusion of capital, Amreli Steels is expected to pursue strategic initiatives aimed at increasing production efficiency, diversifying product offerings, and strengthening its presence in key domestic and regional markets. The sponsorship-based funding also underscores the company’s ability to attract and retain committed stakeholders invested in long-term growth.
Overall, the successful share issuance marks a significant milestone for Amreli Steels, combining regulatory compliance, financial strengthening, and strategic foresight to position the company for sustained success in Pakistan’s evolving steel industry.
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