Stocks Observer. com

KARACHI: Karachi Electric Supply Company KESC, in order to improve operational, financial viability and profitability approved issue of 31% Right Shares. In meeting on Wednesday, its Board of Directors approved issue of 31 ordinary Right Shares for every 100 ordinary shares held by shareholders at par (Rs 3.50 per share. These will provide fresh equity and improve debt equity. Liquidity ratios, reduce cost of financing, enhance profitability for benefit of all stakeholders. Injection of economic, efficient generation in KESC system, implementation of system improvement and loss reduction projects will be partially funded through additional equity. Funds generated through Right Shares will be utilized to partly finance equity component of new generation projects, expand dilapidated transmission and distribution network to help meet working capital deficit to reduce bank borrowings and resultant financing cost. It is expected to positively contribute to future financial results of KESC.