⚡ Flash Summary

The Pakistan General Insurance Company Limited (PKGI) board convened on November 21, 2025, to discuss several key resolutions. These included confirming minutes from a previous meeting, convening an Extraordinary General Meeting (EOGM) on December 15, 2025, and a proposal to increase the authorized share capital. The authorized share capital is proposed to increase from Rs. 500,000,000 to Rs. 2,000,000,000, subject to shareholder approval. Additionally, the board approved and recommended to shareholders the issuance of 9,360,000 ordinary shares for non-cash consideration to Mr. Muhammad Shahzad Habib and Mrs. Bushra Shahzad.

📌 Key Takeaways

• ✅ Board meeting held on November 21, 2025, at the head office in Multan.
• 🗓️ Minutes of the previous meeting on October 28, 2025, were confirmed and approved.
• 📣 An Extra Ordinary General Meeting (EOGM) is scheduled for December 15, 2025.
• ⬆️ Proposed increase in authorized share capital from Rs. 500 million to Rs. 2 billion.
• 💰 Current authorized share capital: Rs. 500,000,000 divided into 50,000,000 ordinary shares of Rs. 10 each.
• 📈 New authorized share capital: Rs. 2,000,000,000 divided into 200,000,000 ordinary shares of Rs. 10 each.
• 📝 Amendments to the Memorandum and Articles of Association to reflect the revised share capital.
• 🤝 Board recommends amendments to shareholders for adoption.
• 📄 Company Secretary authorized to file necessary documents with SECP, PSX, and CDC.
• 💸 Issuance of up to 9,360,000 ordinary shares of Rs. 10 each, for consideration other than cash.
• 👨‍💼 Shares to be issued to Mr. Muhammad Shahzad Habib and Mrs. Bushra Shahzad in equal proportion.
• ⚖️ Issuance subject to the Companies Act, 2017 and approval from SECP, PSX, and shareholders.
• 📊 Company Secretary to prepare valuation reports and explanatory notes.
• 💼 Other business discussed and noted with the Chair’s permission.
• ✔️ Meeting concluded with thanks to the Chair.

🎯 Investment Thesis

I recommend a HOLD rating on PKGI. The increase in authorized share capital provides potential for future growth, but the issuance of shares for non-cash consideration introduces uncertainty regarding dilution and valuation. Further information on the nature and value of the non-cash consideration is needed before a more definitive investment decision can be made. My price target rationale is based on future information.