Amreli Steels Limited has announced its intention to raise Rs 1 billion through a direct issuance of 40 million ordinary shares at Rs 25 per share, including a premium of Rs 15 per share. This route is being taken in lieu of a rights issue, driven by constraints in the ongoing restructuring process.
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The fundraising was approved by the Board in a meeting held on October 3, 2025, and will be exclusively underwritten by existing sponsor Shayan Akberali, who currently holds a 17.09% stake. The new shares would represent up to 13.47% of the current paid-up capital and about 11.87% post-issuance.
The company clarified that the capital infusion will be directed toward strengthening working capital, supporting credit restructuring, stabilizing operations, and ensuring capacity utilization under challenging conditions. “Proceeding via a direct issuance affirms the sponsor’s confidence and commitment to preserving stability for all stakeholders, including minority shareholders,” the company said in its market disclosure. Initially, Amreli had planned a rights issue, but SECP intervened—citing its restructuring status and guidance from the State Bank’s Credit Information Bureau—prohibiting such a route.
As the company awaits shareholder and regulatory approval, it emphasizes that the new shares will carry full parity with existing shares in all respects. The move underscores both the capital stress faced by industrial firms and the lengths to which sponsor stakeholders are willing to go to preserve operational continuity.
