Bank Makramah restructures to boost shareholder value

January 19, 2026 (MLN): Bank Makramah Limited (PSX: BML) is set to implement a capital reduction and strategic restructuring aimed at enhancing shareholder value and ensuring long-term operational stability.

The post-restructuring adjustments are designed to preserve the Bank's total market capitalization, safeguard shareholder net worth, and support a sustainable growth trajectory.

In line with corporate governance best practices, the Bank’s share price on February 2, 2026, will be adjusted proportionally. The opening price will be calculated by multiplying the closing price on January 30, 2026, by a factor of 18.99003516.

This adjustment ensures that the investment value for shareholders remains consistent before and after the capital reduction, with no dilutive impact on existing holdings.

The restructuring includes the merger of M/s Global Haly Development Limited (GHDL) into the Bank, under the ultimate ownership of His Excellency Nasser Abdulla Hussain Lootah, who maintains full control over the Bank, according to the company’s filing on PSX revealed today.

The transaction represents a realignment within the same controlling ownership group, with no change in management or operational control.

Bank Makramah has already reported net profits for the first nine months of the current financial year, strengthened by recoveries of non-performing loans, sale of non-banking assets, and equity injections totaling RS15bn from the Sponsor.

These measures have paved the way for the Bank’s Earnings Per Share (EPS) to turn significantly positive, setting a clear path for future dividend distributions.

Demonstrating a commitment to fairness, the Sponsor has proposed an adjustment to the share swap mechanism.

The original swap ratio, based on a share value of Rs2.14, will be revised to show a current market value of Rs6.25 per share.

This adjustment reduces the Sponsor’s holding from approximately 86% to 76%, aligning with the Bank’s long-term growth strategy and benefiting all shareholders.

To date, the Sponsor’s total investment in the Bank has reached Rs41bn, reinforcing confidence in the Bank’s intrinsic value and its commitment to operational stability.

With nearly all restructuring measures nearing completion, the Board and management remain focused on maximizing shareholder returns and strengthening the Bank’s market position.

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