Yousaf Weaving Mills Limited (YWML) has announced that the Securities and Exchange Commission of Pakistan (SECP) has granted approval for the issuance of 36,352,500 ordinary shares at a par value of Rs. 10 per share, amounting to Rs. 363.525 million.
According to the company’s disclosure submitted to the Pakistan Stock Exchange (PSX), the approval was obtained under Section 83(1)(b) of the Companies Act, 2017 and Regulation 5 of the Companies (Further Issue of Shares) Regulations, 2020. The shares will be issued through a mechanism other than a rights offer.
The approved shares will be allotted to Mr. Khawaja Muhammad Nadeem, Director and Chief Executive Officer of the company, against his outstanding loan provided to Yousaf Weaving Mills Limited. The transaction is intended to convert a portion of the company’s liabilities into equity, thereby strengthening its capital structure.
SECP’s approval letter, dated May 4, 2026, confirms that the company may proceed with the issuance subject to certain conditions. These include issuing the shares in book-entry form within 60 days of approval, notifying the Commission and the securities exchange within seven days of issuance, and ensuring that the recipient retains the resulting shareholding in accordance with applicable regulations.
The company informed the PSX that the approval constitutes material information and has requested dissemination of the announcement to all TRE certificate holders. A formal disclosure has also been submitted in compliance with the Securities Act, 2015.
The share issuance represents a significant corporate action for Yousaf Weaving Mills and reflects the company’s efforts to optimize its balance sheet through debt-to-equity conversion while maintaining compliance with regulatory requirements.
