The proposed capital injection will be made in two tranches, with the first tranche of up to Rs20bn targeted for completion by December 2026.
LAHORE: The Bank of Punjab (BOP) has proposed issuing ordinary shares worth up to Rs30 billion to the Government of Punjab to strengthen its equity base, subject to regulatory and corporate approvals.
In a material information notice submitted to the Pakistan Stock Exchange (PSX) on Monday, the bank said its Board of Directors approved the proposal at its 334th Emergent Meeting held on August 7, 2026.
The proposed equity subscription will be completed in two tranches, with the first tranche of up to Rs20 billion targeted for completion by December 31, 2026. The remaining amount is proposed to be subscribed by June 30, 2027.
Share Issue Price Set at Rs38.20
According to the disclosure, the proposed issue price has been set at Rs38.20 per ordinary share.
However, if the prevailing market price of the bank’s ordinary shares is higher than Rs38.20 at the time of issuance, the applicable issue price will be determined at the prevailing market price plus a 5 percent premium.
The proposed shares will be issued to the Government of Punjab otherwise than through a rights issue.
The capital injection is intended to strengthen the bank’s equity base and provide additional financial capacity to support its operations and future growth.
Transaction Requires Regulatory Approvals
The Bank of Punjab said the proposed share issuance remains subject to obtaining all required regulatory and corporate approvals.
The transaction will require approval from the bank’s shareholders through an Extraordinary General Meeting (EGM), in addition to approvals from relevant regulatory authorities, including the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP), where applicable.
The bank said it would communicate further developments concerning the proposed share issuance to the Pakistan Stock Exchange in accordance with applicable legal and regulatory requirements.
The proposed Rs30 billion capital injection would make the Government of Punjab a key participant in the bank’s planned equity expansion, although completion of the transaction remains contingent on the required approvals.