KTML Board proposes share sub-division to Rs2 face value

July 17, 2025 (MLN): The Board of Directors of Kohinoor Textile Mills Limited (PSX: KTML) has recommended a sub-division of its ordinary shares, proposing a reduction in the face value from Rs10 to Rs2 per share.

The proposed stock split will be executed in a ratio of 5 shares for every 1 share held. To reflect this change, Clause V of the Company’s Memorandum of Association will be amended accordingly.

This strategic move is aimed at making the company’s shares more affordable and accessible to small and retail investors, thereby broadening the investor base and improving market liquidity through increased trading activity.

The company has positioned the stock split as a reflection of its confidence in long-term growth, citing a significant appreciation in share price over the past year, the notification issued to the local bourse.

The initiative is also expected to promote wider investor participation and reinforce Kohinoor Textile Mills’ presence in the equity market.

Following the split, the company’s existing subscribed and paid-up capital, currently comprising 269.29 million ordinary shares of Rs10 each, will be restructured into 1.34 billion ordinary shares of Rs2 each.

Eligible shareholders will receive five ordinary shares for every one share held, based on the record date to be announced following the Extraordinary General Meeting (EOGM).

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