Apna Microfinance Bank Limited has received approval from the Securities and Exchange Commission of Pakistan (SECP) to raise Rs. 1.16 billion by issuing 116.06 million ordinary shares against share deposit money.

In a notice filed with the Pakistan Stock Exchange (PSX), the bank said the regulator approved the issuance of 116.055 million shares at a face value of Rs. 10 each through an other-than-right offer, allowing the bank to convert funds already deposited by investors into equity.

The approval is based on a special resolution passed by shareholders at the bank’s Extraordinary General Meeting on January 21, 2025, followed by the bank’s application to the SECP.

Under the approved allotment, United Track Systems (Private) Limited will receive 43.33 million shares, United Software and Technologies International (Private) Limited 29.71 million shares, Tawasal Risk Management Services (Private) Limited 20.75 million shares, Tawasal Healthcare TPA (Private) Limited 17.34 million shares, and Muhammad Akram Shahid 4.93 million shares.

The SECP has directed the bank to complete the issuance in book-entry form within 60 days and inform both the regulator and the PSX within seven days after the shares are allotted.

The regulator has also imposed lock-in conditions. Shares issued to sponsors and associated companies cannot be sold for two years, while shares allotted to other investors will remain locked for six months.

The transaction will strengthen Apna Microfinance Bank’s capital by converting previously deposited funds into share capital without offering new shares to existing shareholders through a rights issue.