Bank Makramah Limited has taken a significant step in its ongoing restructuring process by closing its share transfer books in connection with a court-approved reduction of share capital. The move follows the sanction of a scheme of arrangement by the Islamabad High Court, marking an important milestone in the bank’s efforts to streamline its balance sheet and strengthen its capital structure.
The restructuring is anchored in the merger of Global Haly Development Limited into Bank Makramah Limited, a transaction approved under the scheme of arrangement sanctioned by the court. As part of this process, GHDL has been fully merged into the bank, allowing Bank Makramah to consolidate its ownership structure and align its share capital more closely with its underlying asset base.
Under the terms of the approved scheme, Bank Makramah issued more than 12.36 billion fully paid ordinary shares to the shareholders of Global Haly Development Limited. These shares were issued as consideration for the merger, effectively transferring GHDL’s equity interest into Bank Makramah. At the same time, the bank undertook a proportional reduction of its existing share capital through the cancellation of shares that were not backed by available assets. This adjustment was designed to reflect the bank’s true financial position following the merger.
Following the completion of the restructuring exercise, Bank Makramah’s issued and paid-up share capital now stands at Rs10 billion. This capital comprises one billion ordinary shares with a face value of Rs10 each. The revised capital structure represents a substantial recalibration compared to the bank’s pre-restructuring position and is intended to provide a more sustainable foundation for future operations.
In a notice issued to shareholders, the bank announced that its share transfer books will remain closed on January 31, 2026. The closure is being carried out to determine shareholders’ entitlement to the newly reduced shares following the capital adjustment. Shareholders whose names appear on the register of members by January 30, 2026 will be eligible to receive the new shares under the revised structure. Any share transfers completed by that date will be considered valid for determining entitlement.
The bank also informed shareholders that all existing physical share certificates will stand cancelled with effect from January 31, 2026. Shareholders who hold shares in physical form will be required to surrender their existing certificates to the share registrar in order to receive new certificates reflecting the reduced share capital. This step is part of the administrative process to ensure that the share register accurately reflects the post-restructuring capital position.
The restructuring comes at a time when Pakistan’s banking sector is facing heightened regulatory scrutiny and a renewed focus on capital adequacy, asset quality, and governance standards. For Bank Makramah, the court-approved scheme and subsequent capital reduction are seen as corrective measures aimed at addressing legacy balance sheet issues and aligning the bank’s equity base with its actual asset backing.
Market observers note that such restructuring exercises, while complex, are often necessary for institutions seeking to restore financial stability and rebuild investor confidence. By completing the merger with Global Haly Development Limited and rationalising its share capital, Bank Makramah has cleared a major hurdle in its turnaround process.
The bank has not yet outlined the next phase of its strategy following the completion of this restructuring step. However, the revised capital structure is expected to provide greater clarity to investors and regulators, while also enabling the bank to focus on operational improvements, compliance, and growth initiatives within a more sustainable financial framework.
As the changes take effect, shareholders and market participants will be watching closely to assess how Bank Makramah leverages this restructuring to strengthen its position in Pakistan’s competitive banking landscape.
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