GEPCO Wants to Raise Its Capital Limit by Rs. 25 Billion Ahead of Privatization
Gujranwala Electric Power Company Limited (GEPCO) has proposed increasing its share capital limit by 50%, from Rs. 50 billion to Rs. 75 billion, following directions from the government’s Cabinet Committee on Privatization.
The proposal will be presented at GEPCO’s 34th Extraordinary General Meeting on October 22, 2026, according to an official notice issued by the company.
What Does the Increase Mean?
The proposed change would allow GEPCO to issue shares worth up to Rs. 75 billion, compared with the current limit of Rs. 50 billion. Each share has a stated value of Rs. 10.
This would increase the maximum number of shares GEPCO is allowed to issue from five billion to 7.5 billion.
However, the proposed increase does not mean GEPCO will immediately issue more shares or receive additional money. It would only raise the limit on the total value of shares the company is permitted to issue.
The notice does not specify whether GEPCO plans to issue additional shares, how much money it might raise, or how any new funds would be spent.
Government Directs GEPCO to Make the Change
The proposal follows instructions issued by the Cabinet Committee on Privatization through the Privatization Commission in a letter dated September 25, 2026.
To make the change, GEPCO would need to amend a section of its founding documents that sets the maximum value of shares it can issue.
If shareholders approve the proposal, the company’s chief executive officer and company secretary would be authorised to complete the required paperwork and submit it to the relevant government departments and regulators, including the Securities and Exchange Commission of Pakistan (SECP).
They could also make corrections requested by these authorities, as long as the changes did not significantly alter the approved proposal.
Other Matters on the Meeting’s Agenda
The meeting will also consider approving the record of GEPCO’s previous annual general meeting, held on October 24, 2025.
GEPCO has called the meeting with less than the usual 21 days’ notice. This is allowed under the Companies Act, 2017, provided all members entitled to attend and vote agree to the shorter notice period.
The notice asks members to give their consent to this arrangement.
The secretary of the Ministry of Energy’s Power Division has also been asked to issue the necessary authorisation for a representative to exercise the federal government’s voting rights at the meeting and approve the shorter notice period.
The proposed increase in GEPCO’s share capital limit will take effect only after the required shareholder approval and completion of the relevant legal and regulatory procedures.
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