Amreli Steels to Raise Rs1bn Through Direct Share Issue

Amreli Steels Limited will raise Rs1 billion by issuing new shares. The company’s board approved the plan during its meeting on October 3, 2025. The notice appeared on the Pakistan Stock Exchange (PSX) the following Monday.
The company will issue up to 40 million ordinary shares at Rs25 each. Each share includes a Rs15 premium. Shayan Akberali, one of the main sponsors, will subscribe to all these shares. He already holds a 17.09% stake in Amreli Steels.
After this transaction, the new shares will make up 13.47% of the company’s existing paid-up capital. They will also account for 11.87% of its total post-issuance capital.

Funding for Stability

Amreli Steels will use the funds to strengthen its working capital and restructure credit. The new capital will help improve cash flows and support daily operations. Strong liquidity will also ensure efficient use of production capacity.
The management believes this step will protect the interests of all stakeholders. The move especially benefits minority shareholders. By improving liquidity, the company aims to maintain operational continuity and drive future growth.
Initially, the firm planned to raise equity through a rights issue. However, the Securities and Exchange Commission of Pakistan (SECP) blocked the move. The SECP explained that Amreli Steels could not proceed because of its ongoing restructuring process. The Credit Information Bureau of the State Bank of Pakistan also issued a related report.
As a result, the company chose a direct share issuance instead. Amreli Steels stated that this capital injection highlights the sponsor family’s trust and commitment. The investment shows confidence in the company’s financial stability and long-term plans.
This step reflects growing optimism in Pakistan’s steel sector. By investing internally, Amreli Steels continues to position itself for recovery and expansion.