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MSC becomes largest listed company on stock market

An annual session of the general assembly of Mobarakeh Steel Company has been held with 75 percent of MSC shareholders in attendance. At the session, first, the presiding board was named. MSC Managing Director Hamidreza Azimian was named chair of the session; Ms. Seifi, who represented the Privatization Organization, and Moulavi, who was there on behalf of IMIDRO, were named observers; and Tahmoures Javanbakht, who is the acting head of MSC Economic and Financial Department, was named secretary of the session.
According to the correspondent of Steel Newsletter, in the gathering, the MSC managing director detailed the reasons why the steelmaker has decided to raise its capital and presented a report on the capital increases of the company and what the injected capital has been spent on over the years.
He put the capital of Mobarakeh Steel Company during its IPO in Tehran Stock Market in March 2007 at 15.8 trillion rials. That figure has increased, in four stages, to 75 trillion rials, he added.
He further said this time an additional 55 trillion rials will be added to the MSC capital, raising the total to 130 trillion rials. That means MSC is the biggest listed company in the stock exchange.
The capital increase from the cumulative profits of the company was another issue raised in the session. “Thirty-six percent of the capital in question will be funneled, as working capital, to future plans; 34 percent will be channeled to capital expenditure for ongoing projects; 16 percent to long-term investment and 14 percent to the capital increases of subsidiaries and affiliates,” the managing director said.
Azimian further stated that the 73 percent capital increase will create an opportunity for MSC to secure its strategic goals and take giant strides toward fulfillment of its mission. The following are some of the opportunities that come with capital increase for MSC:
Tax exemption which will bring about considerable profits for shareholders
Appealing share prices
Expedited registration of capital increase and release of new shares
And, provision of finances to under-construction expansion projects through cumulative profits.
After the managing director's presentation of his report and that of the official inspector, the session overwhelmingly supported the move to increase the company's capital from 75 trillion rials to 130 trillion rials. Final registration of the capital increase and the release of new shares will have been completed by March 20, 2019.
Participants also voted for a motion to increase the volume of the company's grants from 100 billion rials to 150 billion rials. Later, the managing director offered another report on the performance of MSC as far as social responsibility was concerned and underlined MSC's role as one of the biggest industrial units of the country on that front. He also called for an expanded role for the giant steelmaker in contribution to social projects. That report, too, was unanimously adopted.
The following charts feature different areas the capital increase will be channeled to as well as the trend of MSC capital changes over the years.

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