Shahr Financial Group Holds General Assembly
Capital increase for Shahr Financial Group approved; new Board of Directors members elected.
According to the Public Relations Department of Shahr Financial Group, the Ordinary General Assembly (Extraordinarily Convened) of Shahr Financial Group was held this morning at 8:30 AM at the Niroo Research Institute for the purpose of electing members of the Board of Directors.
The assembly commenced with the attendance of over 90% of shareholders. The following entities were elected as the new members of the Board:
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Shahr Bank
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Shahr Leasing Company
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Shahr Smart Strategy Company (Rahbord Houshmand Shahr)
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Jahan Housing and Construction Company
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Shahr Bank Staff Future Provision Institute
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Shahr Development and Renovation Company
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Shahr Industry and Mine Development Group
Following the election of the new board members, an Extraordinary General Assembly was held to address the capital increase and the change in the fiscal year. Ultimately, the assembly approved a 52% capital increase, raising the company’s capital from 3,300 billion Tomans to 5,000 billion Tomans. Additionally, the fiscal year end was changed from Esfand 29 (March 19/20) to Azar 30 (December 21).
CEO’s Remarks
The CEO of Shahr Financial Group stated: "A major portion of the municipal bonds included in the [Iranian year] 1403 budget were sold through the facilitation of Shahr Financial Group. This action generated approximately 80 billion Tomans in revenue, leading to an improvement in cash flow."
Mr. Bigzadeh, referring to the acquisition of 15% of Borna Battery shares and 16% of Pardis Insurance shares, noted: "In addition to investing in these two companies, Shahr Financial Group has purchased 2% of the shares of the Iran Mercantile Exchange (IME) to play a role in the selection of the exchange's board members. Currently, Tamadon Investment Bank, a subsidiary of our group, is present on the IME Board of Directors."
The CEO of Shahr Financial Group continued: "Last year, only a small portion of profits was distributed as dividends in order to retain the resources necessary to strengthen retained earnings and grow the financial structure. Furthermore, the total value of the group's stock market investments exceeds 4,000 billion Tomans, with a cost basis of approximately 3,000 billion Tomans, creating a value-add of one trillion Tomans (1 Hemmat) in the group's portfolio."
Highlighting that "Shahr" has focused on balance sheet restructuring and debt reduction over the past two years, he added: "We have successfully settled the 3,300 billion Toman debt that existed at the beginning of the period and balanced our financial position. The capital structure now benefits from more appropriate financial leverage, and this capital increase is considered the final step in completing this structural reform."
In conclusion, Bigzadeh emphasized: "In line with creating new revenue streams, the sale of municipal bonds has been facilitated within Shahr Financial Group, generating approximately 80 billion Tomans for the company. Moreover, while supporting municipalities, this measure has also been effective in improving the Financial Group's cash flow."