⚡ Flash Summary

Amreli Steels Limited (ASTL) has received approval from the Securities and Exchange Commission of Pakistan (SECP) to issue up to 40,000,000 ordinary shares at a subscription price of PKR 25 per share, including a premium of PKR 15. The shares will be issued to Mr. Shayan Akberali, an existing sponsor of the company, via direct issuance. The aggregate cash consideration will be PKR 1,000,000,000, and the proceeds will be used to restructure the company’s debt in line with lenders’ requirements.

📌 Key Takeaways

• ✅ SECP approves issuance of up to 40,000,000 ordinary shares for Amreli Steels.
• 💰 Subscription price set at PKR 25 per share.
• 📈 Includes a premium of PKR 15 per share.
• 👤 Shares to be issued to Mr. Shayan Akberali, an existing sponsor.
• 🤝 Direct issuance, not a rights issue.
• 💸 Aggregate cash consideration of PKR 1,000,000,000.
• 🏦 Funds earmarked for restructuring company’s debt.
• 🗓️ Approval follows shareholder resolution on October 28, 2025.
• 📅 Board of Directors proposed issuance on October 3, 2025.
• 📝 Company to proceed with statutory filings and formalities.
• 📜 Disclosure compliant with Securities Act, 2015.
• 🏢 Notification to Pakistan Stock Exchange Limited (PSX).

🎯 Investment Thesis

HOLD. The direct issuance will improve Amreli Steels’ financial position by reducing debt. However, the dilution of existing shareholders and overall steel sector challenges warrant a HOLD rating. Price target is dependent on future earnings and debt restructuring success, with a medium-term horizon.