Amreli Steels Limited (PSX: ASTL) has moved forward with a significant financial milestone after receiving formal approval from the Securities and Exchange Commission of Pakistan (SECP) to issue 40 million ordinary shares. Each share carries a face value of Rs10 and will be offered at a subscription price of Rs25 per share, incorporating a premium of Rs15. The total value of this direct issuance amounts to Rs1 billion, marking a substantial capital development for the company as it works to strengthen its financial framework.
The approval is the result of a multi-step process involving both the company’s leadership and its shareholders. The company’s Annual General Meeting, held on October 28, 2025, ratified the initiative through a special resolution. This resolution aligned with an earlier proposal made by the board of directors on October 3, 2025, indicating a unified strategic direction between management and shareholders. The issuance will be made directly to existing sponsor Shayan Akberali, underscoring a continued commitment from key stakeholders in the company’s future.
According to the details provided, the primary purpose of this issuance is to support Amreli Steels’ master debt restructuring plan. The company has been engaged in a structured process to meet lender requirements and improve its overall financial stability. By raising Rs1 billion through equity instead of additional borrowing, Amreli Steels aims to ease pressure on its balance sheet and reinforce long-term sustainability. This direction reflects a broader trend within the corporate sector where companies facing financial challenges are opting for equity-based measures to manage liabilities and strengthen liquidity positions.
With the SECP approval secured, the company will now proceed with statutory filings and completion of allotment formalities as mandated under applicable legal and regulatory frameworks. The disclosure was made in accordance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Rule Book, ensuring transparency and compliance with capital market reporting standards.
Industry observers view this development as an important indicator of confidence in the company’s ongoing efforts to navigate its financial commitments. The infusion of capital is expected to play a direct role in restructuring existing debt, potentially improving the company’s credit outlook and operational flexibility. For stakeholders in Pakistan’s steel and manufacturing sector, the move also highlights the role of regulatory support and shareholder participation in maintaining stability in capital-intensive industries.
As the company advances toward completing the formalities associated with the share issuance, this step represents more than just a fundraising exercise. It reflects a strategic pivot aimed at reinforcing financial resilience, improving leverage ratios, and positioning Amreli Steels for long-term operational continuity. The progress also signals a notable moment within the broader economic environment, where structured governance and regulatory oversight are contributing to corporate recovery and financial discipline.
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