Latest news with #DostSteelsLimited
Business Recorder
23-06-2025
- Business
- Business Recorder
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%.
Business Recorder
29-05-2025
- Business
- Business Recorder
Dost Steels secures Rs2.08bn investment
Dost Steels, in a move to stabilise its financial position, has entered into a restructuring agreement with a consortium of banks, backed by a substantial investment commitment from Muhabbat Khan and Zahir Khan. The two investors have pledged a total of Rs2.08 billion and extended personal guarantees for the repayment of the company's outstanding bank loans, the listed company disclosed in its filing to the Pakistan Stock Exchange (PSX) on Thursday. 'Muhabbat Khan and Zahir Khan who have agreed to make an investment of Rs2.08 billion in the company and who have given personal guarantees to banks for repayment of bank loans on which basis the company has signed a restructuring agreement with banks whereby Rs2.08 billion will be paid by the company in sixteen quarterly instalments to the consortium of banks,' read the notice. Dost Steels Limited fails to resume operations amid financial challenges The company said that as part of the restructuring agreement with banks, Muhabbat Khan has paid an amount of Rs50 million as a down payment to the consortium of banks. Following the development, the share price of Dost Steels Limited increased to Rs9.21, up by Re0.07 or 0.77%. As per the company's latest financial results, the company incurred a loss of Rs242 million in FY24. Dost Steels Limited was incorporated in Pakistan on March 19, 2004, as a private limited company under the Companies Ordinance, 1984 now the Companies Act, 2017. The principal business of the company includes manufacturing steel, direct reduced iron, sponge iron, hot briquetted iron, carbon steel, pig iron and special alloy steel in different forms, shapes and sizes that can be manufactured within the existing facilities.
