Amreli Steels Expands Authorised Capital To Rs8bn

Shareholders of Amreli Steels Limited have approved a substantial increase in the company’s authorised share capital, raising the limit from Rs5 billion to Rs8 billion, according to a corporate disclosure submitted to the Pakistan Stock Exchange (PSX).

The special resolution was adopted during the company’s Extraordinary General Meeting held on June 17, 2026, at the Institute of Chartered Accountants of Pakistan premises in Karachi.

The approved enhancement increases the company’s authorised capital by Rs3 billion, representing a 60% increase over the existing authorised capital structure. The amendment expands the company's capacity to issue additional equity instruments in the future should financing or strategic requirements arise.

Following approval of the resolution, the authorised share capital of Amreli Steels will comprise Rs8 billion divided into 800 million shares having a face value of Rs10 each.

The revised structure consists of 720 million ordinary shares and 80 million cumulative preference shares.

Prior to the amendment, the company’s authorised capital of Rs5 billion was divided into 420 million ordinary shares and 80 million cumulative preference shares, each carrying a face value of Rs10.

Consequently, the approved increase creates the capacity for the potential issuance of an additional 300 million ordinary shares. The authorised number of cumulative preference shares remains unchanged at 80 million.

The company clarified that the increase in authorised share capital merely expands its legal capacity to issue additional shares and does not constitute the immediate issuance, allotment, or placement of new equity securities.

Shareholders also approved corresponding amendments to Clause V of the Memorandum of Association and Clause 3 of the Articles of Association to align the constitutional documents with the revised capital structure.

Under the amended provisions, the company will retain authority to increase, reduce, consolidate, subdivide, reorganise, or otherwise restructure its share capital and to classify ordinary and preference shares into different categories, subject to applicable corporate and securities laws.

The company further stated that any ordinary shares issued under the expanded authorised capital would rank pari passu with the existing ordinary shares and would carry identical voting, dividend, and ownership rights.

Accordingly, newly issued ordinary shares would enjoy the same legal status and shareholder entitlements as existing ordinary shares, subject to the provisions of the Companies Act, 2017 and other applicable regulatory requirements.

In addition, shareholders authorised the company's Chief Executive Officer, Chief Financial Officer, and Company Secretary, acting individually, to undertake all necessary regulatory, corporate, and administrative actions required to implement the approved resolutions.

Such actions include filing the requisite returns, forms, and supporting documentation with the Registrar of Companies and the Securities and Exchange Commission of Pakistan, as well as completing any ancillary procedures necessary to give effect to the approved corporate restructuring measures.

The approved increase strengthens Amreli Steels’ financial flexibility by providing additional headroom for future capital-raising initiatives while maintaining compliance with applicable corporate governance and securities regulations.