Karachi March 4 2022: Pakistan Stock Exchange Limited has approved the schedule of issue of Right Shares of Pak Elektron Limited (PAEL) on March 03, 2022.
The trading in the Unpaid Rights of the Company will start on this Exchange w.e.f. Thursday March 10. 2022.The first settlement date will be on Monday March 14, 2022.
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Board of Directors of Pak Elektron Limited (the “Company”), in their meeting held on February 07, 2022 at Factory Premises had decided to increase the paid-up share capital of the Company by issue of a further 358,330,670 (Three Fifty Eight Million Three Hundred Thirty Thousand Six Hundred and Seventy) ordinary shares, having face value of PKR 10/- (Pak Rupees Ten) each, as Right Shares.
The right shares were offered to the members in proportion of 72 Right Shares for every 100 ordinary shares held i.e. 72 percent, at a price of PKR 14/- (Pak Rupees Fourteen) per Right Share (inclusive of a premium of PKR 4/- (Pak Rupees Four) per Right Share).
The proceeds from the Right Issue will be utilized towards reducing the Company’s current borrowings and will augment the Company’s liquidity in a more optimal capital structure with reduced leverage. This will improve the attractiveness of the Company for investors, owing to lower finance costs and improvement in margins. The proceeds of the right shares will also be utilized for meeting growing working capital requirements and paying for capital expenditure. The expected increase in profit in the long run would enhance the expected returns to the valued members and can then be available for, inter alia, distribution to the members by way of dividend and / or to meet any future capital expenditures.
The Unpaid Rights of the Company have already been declared as eligible security by the Central Depository Company of Pakistan Limited (CDC) and all the transactions shall be settled through the National Clearing Company of Pakistan Limited, which has already assigned the Company Code/Security Symbol as "PAELR3".
Pak Elektron Ltd. was incorporated in Pakistan on March 3, 1956 as a public limited company under the Companies Act 1913 (now Companies Act 2017). The principal activity of the company is manufacturing and sale of electrical capital goods and domestic appliances. The company is organized in two divisions - Power and Appliances.
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