The Bank of Punjab (BOP) has announced plans to raise up to Rs30 billion through the issuance of new ordinary shares to the Government of Punjab, marking a major proposed capital injection into the bank.
According to a disclosure submitted to the Pakistan Stock Exchange (PSX) on Monday, BOP’s Board of Directors approved the proposal during its 334th Emergent meeting held on August 7, 2026. The transaction will be carried out subject to the necessary corporate and regulatory approvals.
Share Subscription to Be Completed in Two Phases
The proposed investment will be made in two stages. The Government of Punjab is expected to subscribe for shares worth up to Rs20 billion by December 31, 2026, while the remaining amount, up to Rs10 billion, is planned for completion by June 30, 2027.
Unlike a conventional rights issue, the proposed shares will be issued otherwise than by way of a rights issue, meaning existing shareholders will not receive rights to subscribe to the new shares on a proportional basis.
Issue Price Set at Rs38.20
BOP has proposed an initial issue price of Rs38.20 per ordinary share.
However, the final price could be higher. If BOP’s market price is above Rs38.20 at the time the shares are issued, the bank will use the prevailing market price and add a 5% premium.
At the base price of Rs38.20, a full Rs30 billion subscription would translate into approximately 785 million new shares.
Regulatory and Shareholder Approvals Required
The proposed transaction is not yet final. BOP will first have to secure approval from its shareholders through an Extraordinary General Meeting (EGM).
The bank will also require clearance from relevant regulatory bodies, including the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).
BOP said that any further developments concerning the proposed share issuance will be communicated to the PSX in line with applicable laws and regulations.
What Does the Capital Injection Mean for BOP?
The proposed Rs30 billion investment could provide BOP with a substantial boost to its capital base. Additional equity could support the bank’s future expansion, strengthen its financial position and provide greater capacity to pursue lending and other business opportunities.
For existing shareholders, however, the issuance of new shares could result in dilution of their ownership percentage, depending on the final number of shares issued.
The ultimate effect will also depend on the price at which the shares are issued and how effectively BOP deploys the additional capital.
A Significant Move by the Government of Punjab
The proposed transaction highlights the Government of Punjab’s continued involvement in the Bank of Punjab and could significantly increase its equity exposure to the financial institution.
With the first tranche targeted for completion by the end of 2026 and the remaining investment scheduled for the first half of 2027, investors will now be watching the approval process, the final issue price and the impact of the new capital on BOP’s financial performance.
For now, the Rs30 billion share subscription remains a proposal subject to shareholder and regulatory approval, rather than a completed transaction.