Dandot Cement Company Limited Confirms Increase in Paid-up Capital and Share Issuance

Karachi, Dandot Cement Company Limited has officially increased its paid-up capital, following a share issuance as part of a long-term loan conversion from its holding company and two other lenders. The company filed necessary documents with the Securities and Exchange Commission of Pakistan (SECP), including a Form-3 and a special resolution passed by shareholders on November 7, 2023. The resolution approved the issuance of 68,181,818 ordinary shares at a price of Rs. 22 each, combining a face value of Rs. 10 and a premium of Rs. 12.

According to information available from the Pakistan Stock Exchange (PSX), this transaction was part of a conversion of a Rs. 1,500,000,000 loan into equity, aimed at strengthening the company’s financial structure. The share issuance details include 22,727,273 shares to Calicom Industries (Private) Limited, 38,636,363 shares to Mr. Zahid Rafiq, and 6,818,182 shares to Mr. Jahanzaib Zahid, totaling an investment of Rs. 1,499,999,996.

The Central Depository Company (CDC) has confirmed the freezing of the newly issued shares, ensuring compliance with SECP conditions. Post-issuance, Dandot Cement’s revised paid-up capital stands at Rs. 3,163,551,320, with a share premium reserve of Rs. 1,606,169,474.

Further, the issued shares will be subject to retention conditions, where Calicom Industries must retain its shares for two years, and Mr. Zahid Rafiq and Mr. Jahanzaib Zahid for six months. Following this issuance, the joint shareholding of Mr. Zahid Rafiq and Mr. Jahanzaib Zahid will exceed 14%, requiring compliance with the Listed Companies (Substantial Acquisition of Voting Shares & Takeovers) Regulations, 2017.

The movement of shares held physically and through CDC reflects the increase, with the total shares rising to 316,355,132 post-issuance. This strategic financial maneuver aims to align the company with regulatory standards and bolster its market positioning.