KARACHI (APP) - Security and Exchange Commission of Pakistan (SECP) has relaxed the condition for issuing right shares twice in a year and allowed KESC to issue 2.501 billion ordinary or 14.50pc right shares at Rs 3.5/share. According to a communique to KSE here Wednesday, KESC said that SECP has allowed its request with the condition that the company should provide an undertaking from the Govt of Pakistan to subscribe its portion of the right issue. KESC said that its share transfer books will be closed from January 2 to 8, 2010 to determine shareholders entitlement to the right shares. The company is expected to generate Rs 8.751 billion from the issue to fund the expansion of transmission and distribution network and system improvement and loss reduction projects. This will improve operational and financial viability and profitability of the company. It will also reduce financing cost and positively contribute to future financial results of KESC. According to KESCs projections, the first right issue will enhance paid up capital to Rs 66.354b while the second will swell the capital to Rs 75b. The right issue is expected to reduce the net loss of the utility company to Rs 2.267b by 2010-11 and turnaround the company by 2011-12 showing a net profit of Rs 8.278b and enhance this profit to Rs 23.615b by 2012-13.