KARACHI (December 12 2009): The Securities and Exchange Commission of Pakistan (SECP) has allowed the Karachi Electric Supply Company (KESC) to issue 14.50 percent right shares ie 2.501 billion ordinary shares at per value ie Rs 3.5 per share total amounting to Rs 8.754 billion as announced by the board of directors of the company on October 27, 2209.
The permission is, however, subject to the condition that the company shall provide an undertaken from the government of Pakistan regarding its commitment to subscribe its portion of the aforesaid right shares. Furthermore, the company shall provide a report to the SECP within 15 days from the completion of the aforesaid right issue providing the break-up of the shares subscribed by the government of Pakistan and the minority shareholders.
According to a notice sent to Karachi Stock Exchange on Friday, the SECP keeping in view the circumstances of the case, has relaxed the requirements of the rules by virtue of power conferred under Rule 10 of the rules and allowed the company to issue right shares.
The SECP has granted relaxation from the requirements of rule v (i) and (iv) of the companies (issue of capital) Rules, 1998. The KESC in its notice, while referring the SECP approval enabling the company to make another right issue in one year without making underwriting arrangements, said that the government of Pakistan undertaking is actively pursued and will be submitted to SECP as soon as possible.
“It is accordingly notified that the share transfer book of the company will remain closed from January 02, 2010 to January 08, 2010 (both days inclusive) in order to determine shareholders entitlement to the said right issue. The right shares would be offered to those shareholders whose names shall appear in the register of members at the close of business on January 01, 2010.