Dost Steels secures lender settlement, asset revaluation plan

September 26, 2025 (MLN): Dost Steels Limited (PSX:DSL) has signed a settlement agreement with its syndicate of lender banks for outstanding liabilities worth Rs2.08 billion, paving the way for the company’s financial restructuring and revival.

The agreement, backed by an initial down payment of Rs50 million, has been formally endorsed by the Sindh High Court through a consent decree, providing a legally binding framework for the restructuring process, according to the company’s progress report today.

In a parallel development, the company has declared a 100% Right issue Share valued at Rs4.44bn at par (Rs10 per share).

Proceeds from the issue will support DSL’s backward integration strategy, including the establishment of a melting plant aimed at improving operational efficiency and long-term profitability.

Meanwhile, a recent valuation by an independent valuer has pegged the company’s assets at Rs10bn, significantly higher than the booked value of Rs2.5bn.

Subject to board approval, the revaluation surplus could boost the company’s break-up value to nearly Rs18 per share, compared to the current Rs0.43 per share.

The Board of Directors is set to meet on October 3, 2025, to review these developments and take further decisions, subject to regulatory and corporate approvals.

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