Lahore: First Treet Manufacturing Modaraba (FTMM) has announced a court-approved reduction in its paid-up capital, sanctioned by the Lahore High Court in March 2025. The capital reduction aligns with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Regulations.

According to the court's order, received on March 20, 2025, FTMM will reduce its paid-up Modaraba fund from Rs. 8.84 billion to Rs. 1.96 billion. This will decrease its Modaraba certificates from 883.59 million to 195.60 million, maintaining the face value of Rs. 10 per certificate. The move is set to affect certificate holders as of the book closure date on June 20, 2025, with entitlement adjusted to 22.137 certificates per 100 held.

The company emphasized that this reduction does not necessitate any price adjustment for the certificates, citing it as a straightforward capital restructuring. According to information available from the Pakistan Stock Exchange (PSX), this capital reduction represents a very large or significant move in the context of FTMM’s financial structuring.

FTMM has communicated this development to TREC holders of the exchange, ensuring compliance with regulatory requirements. The announcement follows the necessary legal and procedural steps, marking a strategic financial adjustment for the company.