Dost Steels Board clears right issue plan

June 23, 2025 (MLN): The Board of Directors of Dost Steels Limited (PSX: DSL) approved the increase in the company’s ordinary issued paid-up share capital through the issuance of 444.69 million ordinary shares as Right Shares at a par value of Rs10 per share.

These shares will be offered in proportion of approximately 100 Right Shares for every 100 ordinary shares held, subject to corporate, legal, and regulatory approvals.

The Right Shares will be offered to members of the Company based on their shareholding prior to the close of share transfer books, in accordance with Section 83 of the Companies Act, 2017.

The new shares will rank pari passu with existing shares, the notification issued to the local bourse.

Proceeds from the Right Issue will support the setup of a melting furnace, enabling DSL to produce billets an essential raw material for its end products.

This move is expected to reduce raw material costs, improve profit margins, and enhance operational efficiency.

The project aims to bolster the Company’s long-term sustainability, profitability, and market competitiveness.

The Right Issue is being offered at a price close to the current market price, minimizing risk. Substantial shareholders and Directors have confirmed their commitment to subscribe (or arrange subscription) to their entitlements.

The remaining portion of the Right Issue will be fully underwritten in compliance with applicable regulations. Normal business risks will persist.

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