⚡ Flash Summary

Amreli Steels Limited (ASTL) has announced the publication of a postal ballot paper for a special business to be transacted at the upcoming Annual General Meeting (AGM). The postal ballot paper is related to seeking shareholder approval for issuing up to 40,000,000 ordinary shares to Mr. Shayan Akberali, an existing sponsor of the company. These shares will be offered at PKR 25 per share, including a premium of PKR 15 per share, potentially generating PKR 1,000,000,000 for the company. The publication serves as a formal notification to shareholders, enabling them to participate in the decision-making process through postal voting.

📌 Key Takeaways

• 📢 ASTL announced publication of postal ballot for AGM.
• 📅 AGM date: October 28, 2025.
• ✉️ Postal ballot for special business at the AGM.
• ✅ Seeking approval to issue 40,000,000 new shares.
• 👤 Shares to be issued to Mr. Shayan Akberali (existing sponsor).
• 💵 Issue price: PKR 25 per share.
• 💰 Premium per share: PKR 15.
• 📈 Total proceeds: Up to PKR 1,000,000,000.
• ⚖️ Issue not by way of right.
• 📝 Requires SECP approval under Companies Act 2017.
• 🏢 Advance against equity from Mr. Akberali is authorized.
• 📑 CEO/CFO/Company Secretary authorized to execute documents.
• 📰 Resolutions subject to SECP amendments.
• ✉️ Postal ballots due by October 27, 2025.
• 🌐 Ballot available on company website.

🎯 Investment Thesis

Based on the information available, a HOLD recommendation is appropriate. The proposed share issuance could benefit the company, but the ultimate impact depends on how the funds are utilized. A more definitive recommendation would require a deeper understanding of the company’s growth strategy and financial projections. The price target will remain similar in the medium term, as there are still numerous questions that need to be answered.