Balochistan High Court Approves Share Restructuring for Gatron Industries, Nova Frontiers, and Ghani & Tayyub

The Balochistan High Court in Quetta has approved a Scheme of Arrangement involving Nova Frontiers Limited, Gatron Industries Limited, and Ghani & Tayyub (Private) Limited, clearing a series of share cancellations, transfers, and fresh share issuances among the three companies. The approval was granted under Section 279 of the Companies Act, 2017, through a court order dated October 28, 2026.

Gatron Industries disclosed the development to the Pakistan Stock Exchange on November 11, after the certified copy of the court order became available. Under the approved arrangement, 31,895,139 fully paid ordinary shares of Gatron Industries currently held by Nova Frontiers will be canceled and reissued to Nova's outgoing shareholders. The exchange will take place at a swap ratio of 8.13 Gatron shares for every Nova share held by the outgoing shareholders.

Shares held by Ghani & Tayyub in Nova Frontiers will be treated separately, with the corresponding Gatron shares issued directly to Ghani & Tayyub's shareholders in proportion to their existing shareholdings. The court also approved the cancellation of 3,921,109 fully paid ordinary shares of Nova Frontiers held by its shareholders, including Ghani & Tayyub. This will reduce Nova's paid-up capital and involve the appropriation of its general reserves and accumulated profits.

Following the cancellation, Nova's paid-up capital will stand at Rs. 96,645,740, divided into 9,664,574 ordinary shares with a face value of Rs. 10 each. The court additionally ordered the cancellation of 3,240,774 Gatron shares already held by Ghani & Tayyub, with an equivalent number of new Gatron shares to be issued directly to its shareholders in proportion to their holdings.

The court ordered that Nova Frontiers' remaining shareholders will continue to own and retain their shares in the company. Nova Frontiers and Ghani & Tayyub will also continue to own and operate their respective remaining businesses as defined under the approved Scheme of Arrangement. The approval marks a significant corporate restructuring for the listed company and its associated entities, with the share swap set to adjust the ownership base across the three firms.