Dost Steels Finalizes Lender Settlement, Announces Asset Revaluation and Right Issue

September 26, 2025 — Dost Steels Limited (PSX: DSL) has reached a major milestone in its financial restructuring journey after securing a settlement agreement with its syndicate of banks over liabilities totaling Rs2.08 billion. The agreement, supported by an upfront payment of Rs50 million, has been formally approved by the Sindh High Court through a consent decree, providing a binding framework for the company’s revival plan.

As part of its turnaround strategy, the company has announced a 100% Right Issue valued at Rs4.44 billion at par (Rs10 per share). The proceeds will be utilized to strengthen DSL’s backward integration plans, including the establishment of a new melting plant aimed at boosting efficiency and ensuring sustainable profitability.

In addition, an independent asset valuation has placed the company’s assets at Rs10 billion, far above the previously recorded value of Rs2.5 billion. Subject to board approval, this revaluation could raise the company’s break-up value to nearly Rs18 per share, a sharp contrast to the current Rs0.43 per share.

The company’s Board of Directors is scheduled to meet on October 3, 2025, to review the settlement progress, right issue plan, and asset revaluation, alongside other key corporate matters.