Lahore: First Treet Manufacturing Modaraba (FTMM) has achieved a significant milestone in its strategic restructuring efforts as the Lahore High Court issued a certified order approving the reduction of the company's paid-up capital. This decision comes in the wake of the de-merger of FTMM's Battery Division, a move aimed at optimizing the Modaraba's capital structure.

The approval, granted on March 24, 2025, aligns with FTMM's compliance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Regulations. According to information available from the Pakistan Stock Exchange (PSX), this legal endorsement marks a pivotal development in FTMM's broader strategy to streamline its financial and operational frameworks.

FTMM initially informed stakeholders of its intentions to reduce paid-up capital via a petition filed with the Lahore High Court on February 3, 2025. The court's favorable ruling underscores FTMM's commitment to adhering to legal and regulatory standards while pursuing its financial goals.

The company has assured that any subsequent developments will be communicated to certificate holders and the market, ensuring transparency and compliance with exchange regulations. The market category designated for this announcement is the Securities Market, as per the PSX guidelines.

FTMM's external legal counsel has confirmed the issuance of the court's order, marking a substantial step forward in the Modaraba's restructuring journey. The company has also advised informing the Trading Rights Entitlement Certificate (TREC) holders of the exchange about this development.