iTANZ Technologies Limited, formerly known as Zahur Cotton Mills Limited, has approved a proposal to split its ordinary shares on a 10-for-1 basis, reducing the face value of each share from Rs10 to Re1. The company disclosed the decision in a notice submitted to the Pakistan Stock Exchange (PSX), stating that the proposed stock split is intended to improve trading liquidity and make its shares more accessible to retail and first-time investors. The proposal remains subject to approval by shareholders and completion of the applicable regulatory requirements before it can take effect.
Under the proposed arrangement, every existing ordinary share with a face value of Rs10 will be divided into 10 shares with a face value of Re1 each. The restructuring will not change the company’s paid-up capital, which currently stands at approximately Rs1.186 billion. Instead, the number of issued shares will increase from around 118.6 million to approximately 1.186 billion following completion of the split. The change will therefore alter the denomination and number of shares without changing the overall paid-up capital of the company.
iTANZ said the proposed stock split will be presented to shareholders through a special resolution at the company’s Annual General Meeting, which is tentatively scheduled for September 30, 2026. The resolution will require approval from at least 75 percent of the votes cast by shareholders. Until the required shareholder approval and regulatory formalities are completed, the proposed split remains subject to the applicable corporate and market procedures.
The company explained that the stock split would not change the underlying economic ownership of existing shareholders. A split increases the number of shares while reducing their face value proportionately, meaning that an investor’s overall proportionate ownership in the company remains unchanged. iTANZ also stated that the proposal would not affect its paid-up capital, net assets or earnings and would not require any cash expenditure by the company. Existing shareholders would therefore receive a larger number of shares representing the same proportionate ownership in the company.
The primary reason given for the proposed split is to improve market liquidity. By lowering the nominal price of an individual share, the company expects its securities to become more accessible to a wider group of investors, including retail participants and individuals entering the stock market for the first time. A larger number of shares in circulation can also provide greater flexibility for investors when buying or selling smaller quantities, potentially supporting increased activity in the company’s shares.
iTANZ noted that a lower per-share price combined with a larger number of outstanding shares can contribute to higher trading volumes and narrower differences between buying and selling prices. The company said this has been among the consistently observed benefits for companies listed on PSX that have carried out share splits. The proposed structure is consequently intended to make trading in iTANZ shares more accessible while potentially increasing market participation.
The market impact can be illustrated through the company’s recent share price. iTANZ shares closed at Rs45.41 on August 21, which would translate into an illustrative price of approximately Rs4.54 per share after a 10-for-1 split, assuming no market movement attributable to other factors. The adjustment is mathematical rather than an immediate creation of additional value. Similarly, iTANZ’s market capitalization was approximately Rs5.39 billion and would remain unchanged immediately following the split, excluding any subsequent movement in the market price.
The stock split proposal comes as iTANZ continues its transformation from its previous identity as Zahur Cotton Mills Limited into a technology focused business. The company was incorporated in Pakistan as a public limited company in 1990 and subsequently underwent a major change in its business profile following its merger with ITANZ Technology Private Limited (ITPL).
The Lahore High Court approved the merger of Zahur Cotton Mills Limited and ITPL in March 2025, with the merger taking effect from October 1, 2023. Following the transaction, Zahur Cotton Mills Limited completed its transition to iTANZ Technologies Limited. The company’s business activities now include software development, installation and implementation, IT related supplies and services, as well as information technology consultancy.
The company has also expanded its activities beyond Pakistan as part of its technology focused operations. iTANZ has secured contracts with an Australian utility company and established a wholly owned entity in Saudi Arabia. These developments form part of its broader international expansion and reflect the company’s shift toward technology and IT related services following the merger.
The proposed share split would therefore come at a time when iTANZ is developing its identity as a technology company while seeking greater participation in the capital market. Improving liquidity and lowering the effective per-share trading price could potentially make the company more accessible to a broader investor base. However, the actual impact on trading activity will depend on investor demand, market conditions and the company’s future financial and operational performance.
For existing shareholders, the proposed transaction does not involve dilution of their ownership or a change in the company’s paid-up capital. Instead, their existing shares would be converted into a greater number of shares with a proportionately lower face value. The final implementation will depend on approval of the special resolution and completion of regulatory requirements.
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