The greatest capital increase in the history of stock exchange / Mobarakeh Steel Co. (MSC) still excelling at stock exchange

Reported by Me-Metals, Dr. Bahman Ayyar Rezaei – a member of the board of directors of Isfahan’s Mobarakeh Steel Co.(MSC) – provided answers to the questions raised by the Me-Metal’s journalist in a telephone interview, which go as follows:

Dr. Rezaei, please explain about today’s, 27 Bahman 1397 (16 Feb. 2019), extraordinary general meeting of Mobarakeh Steel.

The aim of today’s meeting was to increase our capital from 75,000 to 130,000 Billion rials, which is a 73%-increase in capital and is in fact the greatest capital increase in the history of stock exchange that is achieved from the retained earnings. And this caused Mobarakeh Steel Co. (MSC) to be promoted to the first rank among other great stock exchange companies. This indicates the power of the company. That is to say that we now outrank Persian Gulf Petrochemical Industries Co., Tamin Petroleum & Petrochemical Investment Co. (TAPPICO), Iran National Copper Industries Co. and Ghadir Investment Co. .

Persian Gulf Petrochemical Co. with 91,500 Billion rials capital stands at the second position.

Mobarakeh Steel Co. (MSC) with 130,000 Billion rials capital multiplied distance from the second company in stock exchange.

The retained earnings were at the beginning of the year 57,740 Billion rials, per each share 770 rials. The capital before increase was 55,000 Billion rials, per each share 733 rials. The remaining retained earnings were 2,740 Billion rials, per each share 34 rials. We predict that by the end of 1397, we will have 95,000 Billion rials profit. The nine-month net profit of the fiscal year of 1397 is 70,000 Billion rials and it is expected to grow to 95,000 by the end of the year.

This increase is different from the increase caused by asset reevaluation. In asset reevaluation, for example the asset of a company is 100 Billion rials and after evaluation becomes 150 Billion rials. However, we have increased our capital from the retained earnings.

Last year the profit was about 57,000 Billion rials. Despite sanctions, international pressures on the company and other issues, Mobarakeh Steel Co. (MSC)  is still excelling at stock exchange.

What measures are you going to take for the upcoming year (1398 : Solar Calendar)?

We are going to maintain our current status. Although we are at the moment under sanctions imposed by the US, we intend to take some measures in order to maintain our current status as long as possible.

What are your plans in relation to export?

Currently we are getting counseled to find solutions to the problems of the export, according to the international rules and regulations. Besides, we are about to start bartering if we cannot conduct monetary transactions. 

How about the under-construction projects? What do you intend to do about them?

We are going to develop and carry out all the unfinished projects strongly as ever and with all the energy.

Interview by: Alireza Jafarinejad

Translation by: M. Payehghadr