Dewan Farooque Motors Limited (PSX: DFML) is set to approve the conversion of outstanding loans from Sponsor and Associated Company Dewan Motors (Private) Limited into equity at the extraordinary General Meeting scheduled for August 27, 2024.
Key Details of the Conversion
The conversion will involve issuing new shares to the Sponsor and Associated Company under Section 83 of the Companies Act 2017. DFML announced this in a notice to the main bourse on Wednesday. If the resolution passes, the company will issue 161 million ordinary shares at Rs. 10 each, amounting to Rs. 1.61 billion. This issuance will be done otherwise than rights.
Background of Dewan Farooque Motors Limited
Incorporated in Pakistan on December 28, 1998, Dewan Farooque Motors Limited is a public limited company. The company’s main activities include assembling, progressive manufacturing, and selling vehicles in Pakistan.
Current Market Performance
At the time of filing, DFML’s stock was trading at Rs. 42.17, up 0.62 percent or Rs. 0.26 with 3.8 million shares traded on Wednesday.
Impact of the Conversion
The conversion of loans into equity is expected to strengthen DFML’s financial position by reducing its debt load and increasing its equity base. This move aims to provide the company with better financial stability and support its growth plans.
Stay tuned for more updates on the outcome of the extraordinary General Meeting and its implications for Dewan Farooque Motors Limited.