Sapphire Fibres Limited has issued 1.32 million new shares as part of its ongoing merger arrangement with Reliance Cotton Spinning Mills Limited, according to a notice submitted to the Pakistan Stock Exchange.

The shares were credited to eligible shareholders on April 24, 2026, following approval of a share swap mechanism under the merger scheme. Under the agreed terms, shareholders of Reliance Cotton received 0.40 shares of Sapphire Fibres for each share held.

As part of the transaction, Reliance Cotton Spinning Mills shares have been removed from the Central Depository System, marking a key step toward its integration into Sapphire Fibres.

Following the issuance, Sapphire Fibres’ paid-up capital has increased to 24.87 million shares, strengthening its capital base ahead of full consolidation.

The merger process, initiated in 2025, is part of a broader restructuring within the Sapphire Group aimed at streamlining operations and improving efficiency across its textile businesses.

Once completed, Reliance Cotton Spinning Mills will be absorbed into Sapphire Fibres and dissolved without winding up, subject to completion of remaining legal and regulatory formalities.

Industry observers say the transaction reflects ongoing consolidation trends in Pakistan’s textile sector, as companies look to achieve scale, reduce costs, and improve competitiveness amid challenging export conditions.