ISLAMABAD: The Lahore Electric Supply Company (Lesco) has decided to raise its authorised share capital by 300 percent to Rs200 billion from the existing Rs50 billion, sources close to the Lesco Board chairman told Business Recorder.
The proposal will be taken up as special business at the company’s Annual General Meeting (AGM) scheduled for February 6, 2026. Shareholders will be asked to approve an increase in authorised capital to accommodate the rising equity of the Government of Pakistan in the utility.
Under the proposal, Lesco’s authorised capital will be divided into 20 billion ordinary shares of Rs10 each, carrying such rights, privileges and conditions as may be determined through a special resolution in accordance with applicable laws. Following approval, Clause V of the company’s Memorandum of Association will be amended to reflect the revised capital structure.
According to company officials, the increase has become necessary in view of the government’s growing equity stake, with deposits for shares standing at Rs149.51 billion as of June 30, 2025. The amended clause will also empower the company to increase or reduce its capital, create different classes of shares, and attach or modify rights and privileges, while ensuring that rights related to profits, voting and other benefits remain proportionate to the paid-up value of shares.
For representation of 673.8 million shares registered in the name of the President of Pakistan, Lesco has sought a proxy under Article 45 of its Articles of Association. The proxy will be granted in favour of either Lesco Chief Executive Officer Muhammad Ramzan or Chairman of the Board Amer Zia to exercise voting rights at the AGM.
The AGM will also authorise the chief executive officer and company secretary, jointly and severally, to complete all legal and corporate formalities, including filing the required documents with the Securities and Exchange Commission of Pakistan and the Registrar of Companies.
Sources said the government’s equity in Lesco stems from adjustments made during the settlement of power sector circular debt. In June 2013, the Finance Division transferred Rs341.96 billion to Pakistan Electric Power Company (Pepco) for clearing liabilities to independent power producers and others, of which Rs37.97 billion was allocated to Lesco and recorded as equity.
Subsequent adjustments, including Rs886 million allocated in 2019 and credit notes of Rs45.88 billion issued by CPPA-G during the year ended June 30, 2025, have steadily increased the deposit for shares. As a result, Lesco’s total deposit for shares has now reached Rs149.51 billion, compared to Rs103.63 billion a year earlier.
Story by Mushtaq Ghumman
