logo
Dost Steels to raise Rs4.45bn via rights issue to fund billet production

Dost Steels to raise Rs4.45bn via rights issue to fund billet production

Dost Steels Limited, a Pakistani steel manufacturer, plans to raise Rs4.45 billion (USD 15.6 million) through a rights issue to fund the installation of a melting furnace.
The listed company disclosed the development in its filing to the Pakistan Stock Exchange (PSX) on Monday.
The quantum of the right issue is approximately 100% of the existing paid-up capital of the company, i.e. approximately 100 right shares for every 100 ordinary shares held by the company's shareholders.
As per the filing, the company shall issue 444,695,577 ordinary shares, at par, that is at a price of Rs 10/- per right share, aggregating to Rs4.45 billion.
The steel maker said that the purpose of the rights issue is to raise funds for the installation and commissioning of a melting furnace to produce billets. Additionally, the funds will be used to meet the company's working capital requirements.
Dost Steels secures Rs2.08bn investment
DSL shared that by setting up the melting furnace, the company will be producing billets, which are essential raw materials for producing the end product.
'This will significantly reduce raw material costs, leading to improved profit margins,' it said.
Moreover, the project will boost operational efficiency, provide enhanced supply chain control, and support the business's long-term sustainability. 'These improvements are anticipated to result in increased profitability and shareholder value, thereby strengthening the company's financial position and competitive standing in the market,' it said.
The company was of the view that the right issue is being carried out at a price, which is near the current market price, and hence, there is no major risk associated with it.
However, normal risks associated with the business will remain.
On Monday, the share price of DSL settled at Rs7.24, a decrease of Re0.18 or 2.43%.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Dar seeks 'stable relationship' with US in meeting with Rubio
Dar seeks 'stable relationship' with US in meeting with Rubio

Express Tribune

time16 minutes ago

  • Express Tribune

Dar seeks 'stable relationship' with US in meeting with Rubio

DPM Ishaq Dar meets US Secretary of State Marco Rubio at the State Department in Washington, DC on July 25, 2025. Photo: Foreign Office Listen to article Deputy Prime Minister and Foreign Minister Ishaq Dar told US Secretary of State Marco Rubio that Pakistan sought an 'expanded and stable' bilateral relationship with Washington, highlighting the 'strong convergences' between the two sides on several issues. Dar held talks with Rubio in Washington in their first face-to-face meeting at the State Department, following several telephonic conversations. A statement issued by the Foreign Office said that upon his arrival at the State Department, Dar was received by senior US officials. Pakistan's Ambassador to the United States Rizwan Saeed Sheikh accompanied him during the visit. Senior officials from both sides also joined the delegation-level talks. The discussions focused on bilateral relations and prospects for cooperation across multiple sectors, including trade, investment, agriculture, technology, and minerals. Pleased to meet Secretary @MarcoRubio for a comprehensive discussion on the full spectrum of bilateral relations. We reaffirmed our commitment to the long term Pakistan-US partnership, with renewed focus on economic, trade, investment, IT/AI and CT cooperation. We also exchanged… — Ishaq Dar (@MIshaqDar50) July 25, 2025 Both sides reviewed the progress in the ongoing Pakistan-US trade dialogue, expressing optimism over positive developments. Dar highlighted Pakistan as an attractive destination for US businesses and investors. On regional security, the leaders discussed counterterrorism cooperation and broader peace efforts. Dar lauded President Donald Trump and the US leadership for their efforts to promote global peace, particularly appreciating the President's role amid recent Pakistan-India tensions. Secretary Rubio acknowledged Pakistan's sacrifices in the fight against terrorism and appreciated its positive role in promoting regional and global peace. Dar reaffirmed Pakistan's desire for expanded and stable bilateral relations, underscoring that there is a strong convergence of views and shared interests between the two countries on regional peace and stability. He also appreciated the role of the Pakistani-American community as a 'bridge' between the two nations. نائب وزیر اعظم /وزیر خارجہ پاکستان محمد اسحاق ڈار کا دورہ امریکہ اور امریکی زیر خارجہ مارکو روبیو سےملاقات@MIshaqDar50 — PTV News (@PTVNewsOfficial) July 25, 2025 Both leaders reiterated their commitment to further strengthen bilateral ties and enhance institutional cooperation in diverse sectors, expressing determination to work together for long-term stability and prosperity. This marked the first formal meeting at the foreign minister level between Pakistan and the United States in several years, as the previous administration under president Joe Biden had largely ignored Islamabad. The meeting between Dar and Rubio came against the backdrop of a renewed push by both sides to reset their ties, which have often been marred by mistrust. Contrary to expectations, under President Trump's second term, relations between the two countries took a positive turn. It was Pakistan's assistance in arresting and extraditing one of the masterminds of the Kabul Airport attack in August 2021 that led to the reset in ties with the US. President Trump publicly praised Pakistan's efforts in his first address to the US Congress. Also Read: US hosts Pakistan military chief at White House, India responds by warming to China The India-Pakistan conflict also brought the two countries closer, as Trump repeatedly took credit for brokering the ceasefire between the two South Asian rivals. Then, amid the Iran-Israel war, President Trump hosted Chief of Army Staff (COAS) Field Marshal Syed Asim Munir at the White House in an unprecedented move that raised eyebrows in New Delhi. Following the army chief's meeting at the White House, there have been increased contacts between the two countries. The meeting in Washington on Friday was seen as Pakistan's push to revive the structured mechanism between the two countries.

Rubio lauds Pakistan's anti-terror role, vows deeper ties in meeting with FM Dar
Rubio lauds Pakistan's anti-terror role, vows deeper ties in meeting with FM Dar

Business Recorder

time2 hours ago

  • Business Recorder

Rubio lauds Pakistan's anti-terror role, vows deeper ties in meeting with FM Dar

U.S. Secretary of State Marco Rubio on Friday acknowledged Pakistan's sacrifices in the fight against terrorism and praised its constructive role in promoting regional stability, Aaj News reported. The remarks came during his first in-person meeting with Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, who is on an official visit to the United States. During the meeting, both sides reaffirmed their commitment to strengthening bilateral cooperation across multiple sectors, including agriculture, minerals, and digital technology. The delegation-level talks were attended by senior officials from both sides, including Pakistan's Ambassador to the U.S., Rizwan Saeed Sheikh. Dar received a warm welcome upon arrival and appreciated the U.S. leadership's efforts toward peace. He highlighted Pakistan's potential as an investment destination and reiterated the importance of deepening trade and technology collaboration. The deputy prime minister is also scheduled to speak at the US think tank, The Atlantic Council, sharing Pakistan's perspective on regional and global issues as well as the future of Pak-US relations. Pakistan's Ambassador to the US, Rizwan Saeed Sheikh, and senior embassy officials received Dar at the train station in the US capital. Reciprocal tariff: Pakistan officials to meet Trump administration, Bloomberg reports During his week-long visit, Dar attended high-level signature events of Pakistan's UN Security Council (UNSC) presidency in New York, while he met UN Secretary General António Guterres, on the sidelines of the High-Level Political Forum (HLPF) on Sustainable Development, as well. A day ago, Bloomberg, quoting US State Department Spokesperson Tammy Bruce as saying, reported that a Pakistani delegation will soon meet the administration of US President Donald Trump in a bid to reach an agreement on a trade deal. In a US Department of State press briefing on Wednesday, Bruce said she will attend the meeting between the Pakistani delegation and US officials. Islamabad is looking forward to the 29% reciprocal tariffs to be lifted that the Trump administration initially levied, Bloomberg said. The South Asian country has proposed to increase imports of soybeans and cotton, while it is already the second-largest buyer of US cotton by value, after China. Whereas, Pakistan's biggest export destination is the United States. Bilateral ties between Pakistan and US have improved in recent times, with Trump's holding a rare meeting with Field Marshal Asim Munir at the White House. The FO stated on July 19 that FM Dar's visit is an indication of Pakistan's increasing importance in both its relations with the US and the global landscape. Moreover, in order to complete a trade agreement, Finance Minister Muhammad Aurangzeb has also visited the United States and met with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer in Washington recently to advance economic cooperation, as per the Ministry of Finance. Reuters last week reported that the negotiations, focused on reciprocal tariffs, are part of a broader push to reset economic ties at a time of shifting geopolitical alignments and Pakistan's efforts to avoid steep US duties on exports.

Pakistan to slow dollar buying, reduce rupee pressure: report
Pakistan to slow dollar buying, reduce rupee pressure: report

Business Recorder

time3 hours ago

  • Business Recorder

Pakistan to slow dollar buying, reduce rupee pressure: report

The State Bank of Pakistan (SBP) will continue to build its dollar stockpile but at a slower pace without putting undue pressure on the rupee, according to Citigroup Inc., Bloomberg reported. 'Although reserves have improved from the lows of early 2023, we still continue to welcome the central bank's reserve building as external buffers remain low,' Katie Kironde, emerging markets economist and macro strategist at Citi, wrote in a note. The central bank eased its reserve building strategy this week, and this helped liquidity improve in the interbank market, she added. The pressure on the Pakistani rupee has eased in the past three trading sessions, data from the central bank shows. The currency, however, is still lagging most peers in Asia year-to-date, having fallen over 2% against the dollar. The country's forex reserves, meanwhile, rose $23 million to $14.53 billion as of July 11. In the interbank market on Friday, the rupee appreciated 0.27% against the US dollar, settling at 283.45, a gain of Re0.77 compared to the previous close of 284.22. This marks a continuation of the currency's strengthening trend observed earlier in the week. Currency dealers attribute the improvement in the rupee's performance partly to a reported crackdown on foreign currency smuggling by law enforcement agencies. According to Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), raids conducted by the Federal Investigation Agency (FIA) against smugglers led to a drop in the dollar rate both in open and interbank markets. On Wednesday, the rupee had recovered by Re0.21 in the interbank, closing at Rs284.76 compared to Tuesday's Rs284.97. Bostan revealed that he had led a delegation to meet Director General Counter-Intelligence General Faisal Naseer at the Inter-Services Intelligence (ISI) headquarters. Following the meeting, orders were reportedly issued for a targeted crackdown against currency smugglers, particularly those operating routes to Afghanistan and Iran. 'The dollar supply to legal channels had been shrinking due to better rates in the black market. With this crackdown, the smuggler mafia has gone underground,' Bostan said, expressing optimism that the exchange rate could fall further to Rs270 or even Rs250 if enforcement continues. Meanwhile, global currency markets also lent support to the rupee's recent performance. The US dollar steadied near two-week lows on Friday, with the dollar index set for its weakest weekly performance in a month. Oil prices also rose on optimism around trade developments and potential Russian gasoline export restrictions, further supporting sentiment. Financial conditions in Pakistan have improved, with the central bank cutting the key policy rate by half to 11% since last year to bolster growth. The South Asian nation has steered itself out of near-default conditions in 2023, with the Shehbaz Sharif-led government unlocking funds under International Monetary Fund programs and unveiling a budget that pledged to stay the course on fiscal consolidation.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store