FAQs – Reduction of Share Capital & Share Split
Frequently Asked Questions (FAQs)
The scheme is an accounting adjustment designed to rationalize WTL’s
capital structure. Over the years, unrepresented capital, accumulated
losses, and discount on shares inflated the balance sheet.
By reducing the paid-up capital and face value, WTL can absorb these accumulated losses and write off the discount on share capital, putting the balance sheet on a sustainable footing for future growth, investment, and capital raising.
By reducing the paid-up capital and face value, WTL can absorb these accumulated losses and write off the discount on share capital, putting the balance sheet on a sustainable footing for future growth, investment, and capital raising.
The restructuring is executed as a single integrated transaction in two
sequential steps:
- Capital Reduction (90%): Cancels paid-up capital lost or unrepresented by available assets.
- Consequential Stock Split (1-to-10): Subdivides each remaining share into ten shares.
No. After the completion of both stages, your total number of shares remains unchanged.
Example: If you held 10,000 shares before the corporate action:
- Stage 1 (Capital Reduction): Reduced temporarily to 1,000 shares.
- Stage 2 (Stock Split): Split 1-to-10, bringing your total right back to 10,000 shares.
Note: Minor variations of 1 share may occur only for holders of fractional share balances due to Court-approved rounding rules.
No. The restructuring involves no issuance of new shares, no distribution
of assets, and no transfer of value between shareholders. Your proportional ownership, voting rights, and equity stake in the
company remain identical before and after the process.
The face value (par value) of WTL ordinary shares decreases from
Rs. 10/- per share to Rs. 1/- per share. This reduction in par value absorbs the unrepresented equity on the
balance sheet.
No. The Pakistan Stock Exchange (PSX) will not adjust the market price
ex-price as a result of this scheme. Because the total number of shares you hold after the composite action
remains identical, the market valuation per share is unaffected.
No. The scheme on its own would not be a factor in determination of the
share price based on the following:
- No deletion.
- No new issuance as a result of this action.
- Proportionality of rights, ownership and assets related to each holding remains unchanged.
No. Despite the highest stake of GTC, under the Court-sanctioned composite
scheme, there is absolutely no special treatment or preferential carve-out
for GlobalTech Corporation (GTC). The scheme applies equally and uniformly to all ordinary shareholders
across the board.
No. This restructuring is purely a non-cash, internal balance sheet
cleanup exercise. No cash, physical assets, or corporate liabilities are transferred to
or from WorldCall with respect to GTC or any subsidiary or associate. WTL’s liquidity, cash balance, and operational asset base remain
entirely intact.
No. Under the AGM-approved resolutions and Court sanction order, the
capital reduction and stock split apply exclusively to ordinary paid-up
capital. The terms, entitlements, privileges, and conversion mechanisms of
Convertible Preference Shares (CPS) and debt, whether external or
extended by group entities, remain intact and unchanged.
No. This process is strictly an internal equity accounting reorganization.
It involves:
It involves:
- No outflow of cash or assets.
- No reduction or modification in amounts owed to creditors.
- No compromise on any existing obligations or debt terms.
- No variance is created in the rights or obligations of the debtors, and they are not affected under the scheme.
Although the Lahore High Court approved this as one unified recapitalization,
technical and operational limitations within the Central Depository System
(CDS) require processing it in two sequential stages: Stage 1: Capital Reduction. Stage 2: Stock Split. The second stage follows immediately after the first stage.
The Court-approved scheme prohibits crediting fractional shares in the CDS.
- Whole numbers + fractions: Only the whole shares are credited during reduction before applying the 10-for-1 split.
- Holdings resulting in less than 1 full share: Allocated 1 full share under the court-sanctioned minimum one-share rule before the 10-for-1 split is applied.
| Parameter | Schedule |
|---|---|
| Court Sanction Date | July 08, 2026 |
| Entitlement Date | Friday, August 07, 2026 |
| Trading Suspension Date | Friday, August 07, 2026 (for CDS processing) |
| Settlement Terms | T+0 settlement for trades on August 07, 2026 |
| Book Closure Dates | August 08, 2026 – August 09, 2026 (both days inclusive) |