National Foods to Subdivide Shares Five-for-One

National Foods Limited has announced a proposed subdivision of its ordinary shares, with each existing Rs. 5 share to be split into five ordinary shares of Rs. 1 each. The decision was approved and recommended by the company’s Board of Directors at its meeting held on September 18, 2026.

According to the company’s disclosure, the proposed subdivision will not change the company’s overall paid-up capital. Instead, it will increase the number of outstanding shares while reducing the nominal value of each individual share.

Under the proposal, National Foods’ existing subscribed and paid-up capital of 233,115,425 ordinary shares of Rs. 5 each will be restructured into 1,165,577,125 ordinary shares of Rs. 1 each. Existing shareholders will be entitled to receive five Rs. 1 shares for every one Rs. 5 share held, subject to the required approvals and the effective date to be announced by the company.

The company stated that the subdivision will not result in any change to its subscribed and paid-up capital. The proposed changes will also require amendments to the company’s Memorandum of Association and Articles of Association in line with the applicable provisions of the Companies Act, 2017.

Shareholders to Consider Proposal at AGM

National Foods has also announced that its 55th Annual General Meeting (AGM) will be held on Monday, October 26, 2026, at 10:00 AM at Beach Luxury Hotel, Karachi. The meeting will seek shareholders’ approval for the proposed corporate matters.

The share subdivision remains subject to the necessary approvals under applicable laws and regulations. The company has disclosed the proposal in compliance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1(a) of the Pakistan Stock Exchange Rule Book.

What the Share Subdivision Means

A five-for-one subdivision changes the number and face value of shares without, by itself, changing the company’s paid-up capital. For example, a shareholder holding 100 shares of Rs. 5 each would, following the subdivision, hold 500 shares of Rs. 1 each, subject to the company’s effective date and applicable approvals.

The move is therefore primarily a restructuring of the denomination and number of shares rather than an increase in the company’s paid-up capital.

National Foods has formally communicated the proposal to the relevant authorities and shareholders, with the final implementation dependent on the required regulatory and shareholder approvals.