January 25, 2021

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The Karachi Stock Exchange (Guarantee) Limited’s issuance of 7.25% right shares

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Karachi: We refer to the Letters forwarding therewith “Procedure to be complied with for issue of Right Shares” and “Approval to the schedule of credit / issuance of Letter of [...]

Karachi: We refer to the Letters forwarding therewith “Procedure to be complied with for issue of Right Shares” and “Approval to the schedule of credit / issuance of Letter of Rights”, with respect to the subject right issue of the Company.

The following information is furnished:-

1 (s) The subscription received towards rights shares is summarized below:-

 

KESP GOP Other Total
Offered
No. of Shares 1,120,374,000 396,009,729 27,166,870 1,543.550,599
Total face value (PKR) 3,921,309,000.00 1,386,034,051.00 95,084,045.50 5,402,427,096.50
Subscribed
No. of Shares 1,120,374,000 396,009,729 24,783 1,515,406.512
Total face value (PKR) 3,921,309,000.00 1,386,034,051.00 86,740.50 5,307,429,791.50

 

(b) KESP has undertaken to subscribe to the un-subscribed right shares of minority shareholders follow:-

 

No. of Shares Total face value
Offered to minority shareholders 27,166,870 95,084,045.50
Subscribed by minority shareholders 24,783 86,740.50
———- ————-
Balance / Unsubscribed – paid by KESP 27,142,087 94,997,305.00

 

The subscription of the above unsubscribed amount has been received from KESP and auditors’ certificate will be shortly filed with the esteemed Exchange.

Fractional rights ware consolidated for disposal through a member of KSE. The said fractional rights could not be sold due to unfavorable market price as compared to offer price.

Auditors Certificate confirming receipt of above subscription is also attached for the purpose of issuance of NOC in the name of bankers to the right issue for release of subscription amount received by them.

The Company shall also ensure compliance of all other requirement relevant to the issue.

Confirmation for Paid-up Capital

As requested,

a) We confirm that we have verified from bank statements and books and records of Karachi Electric Supply Company Limited (“the Company’) that following amounts has been received by the Company against right issue of shares as approved in the Board of Directors meeting held on 29 July 2011:

 

Rupees

From KES Power Limited 3,921,309,000
From Government of Pakistan 1,386,024,051
————-
From Minority Shareholders (excluding unsubscribed portion) 86,740
5,307,429,791

 

b) We confirm that as per the audited financial statements of the Company as at and for the year ended 30 June 2011, the Company’s paid-up capital (ordinary shares) is Rs. 74,352,083,009 (Rupees seventy four billion three hundred fifty two million eighty three thousand nine only). This paid-up capital is net of transaction costs of Rs. 164,152,782 (Rupees one hundred sixty four million one hundred fifty two thousand seven hundred eighty two only) and represents 21,290,353,083 ordinary shares of Rs. 3.50 each. The above does not include the subscription money of Rs. 5,307,429,791 (Rupees five billion three hundred seven million four hundred twenty nine thousand seven hundred ninety one only) received against right issue of shares as mentioned in (a) above.

c) We confirm that based on receipt of the subscription amounts for the right issue of shares as mentioned in (a) above, the enhanced paid-up capital of the Company will be Rs. 79,659,512,800 (Rupees seventy nine billion six hundred fifty nine million five hundred twelve thousand eight hundred only). This paid-up capital will be net of transaction costs of Rs. 164,152,782 (Rupees one hundred sixty four million one hundred fifty two thousand seven hundred eighty two only). The above is as per the decision in the Board of Directors meeting held on 29 July 2011 whereby a 7.25% right share issue was approved. This would result in total of 22,806,761,595 ordinary shares of Rs. 3.50 each. Further, we have been given to understand by the Management of the Company that, the Company is to process of issuing right shares, subject to completion of necessary regulatory.

Legal compliance in respect of 7.25% right issue

As requested, we confirm to have verified from books and records of Karachi Electric Supply Company Limited (“the Company”) that following legal requirements have been completed in respect of 7.25% right issue of shares of the Company:

The Board of Directors of the Company have approve the 7.25% issue of right shares in the Board of Directors meeting held on 29 July 2011;

Approved of issue of right shares communicated to Securities and Exchange Commission of Pakistan (SECP), relevant Stock Exchanges, the Registrar Joint Stock Companies, Central Depository Company of Pakistan Limited (CDC) and the Share Registrar of the Company;

Press notification has been issued amounting the above rights issue of shares;

SECP has granted relaxation from underwriting requirement and for making second right issue of shares within one year;

Undertaking has been received from KES Power Limited (holding company) that it will subscription portion of right shares declined or not taken up by minority shareholders in addition to portion of its own right shares (72.58%);

Letter of Undertaking from Government of Pakistan to subscribe for its portion of right shares (25.66%);

At Stock Exchanges have approved the tentative time schedule of credit / issuance of Letter of Right of the Company;

Circular required under section 86 (3) of Companies Ordinance, 1984 has been filed with SECP and relevant Stock Exchanges; and

Communication to SECP, relevant Stock Exchanges, the Registrar Joint Stock Companies, CD, the Share Registrar of the Company and press notification regarding payment of subscription money by sponsor / holding company towards right issue has been done.

For more information, contact:
Adil Murtaza
Assistant Manager, Media and PR
Karachi Electric Supply Company Limited (KESC)
2nd Floor, State Life Building No 11, Abdullah Haroon Road, Saddar,  Karachi
Tel: +9221 9920 7163
Cell: +92346 822 3641
Email: adil.murtaza@kesc.com.pk

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