Lahore: Wasl Mobility Modaraba, formerly known as First Prudential Modaraba, has scheduled its Annual Review meeting for the certificate holders on October 28, 2025. The meeting will take place at the Lahore Chamber of Commerce and Industry, and attendees will have the option to participate in person or via video link. This gathering will address both ordinary and special business, including a proposal to issue right modaraba certificates to enhance the company's financial standing.
On October 6, 2025, the management of Wasl Mobility Modaraba issued a notice detailing the agenda for this pivotal meeting. A significant item under special business is the approval for the issuance of right modaraba certificates. The Board of Directors of WASL Modaraba Management Limited, formerly Awwal Modaraba Management Limited, has recommended increasing the authorized certificate capital from 152,217,660 to 200,000,000 modaraba certificates, each valued at Rs. 10. This proposal is contingent upon the approval of the Registrar of Modaraba Companies and the Securities and Exchange Commission of Pakistan (SECP), along with necessary amendments to the modaraba's prospectus.
The right issue aims to increase the paid-up certificate capital from 129,391,676 to 160,717,400 modaraba certificates. This would involve the issuance of an additional 31,325,724 certificates priced at a discount. For general certificate holders, the price is set at Rs. 4.74 per certificate, reflecting a 52.6% discount, while the Modaraba Company [sponsor] will receive them at Rs. 5.27, a 47.3% discount. These certificates will be offered at a rate of 24.21 right modaraba certificates for every 100 held, translating to a 24.21% right issue.
According to information available from the Pakistan Stock Exchange (PSX), the move to issue certificates at a discount aligns with section 82 of the Companies Act, 2017, owing to the market price being lower than the par value for over a decade. The issuance is designed to replace a Rs. 150 million shareholder loan with new equity injection, as mandated by the SECP in a letter dated September 19, 2024.
The anticipated financial benefits of this right issue include enhanced profitability and an expected reduction in loan-related expenses, which totaled Rs. 25,621,505 for the fiscal year ending June 30, 2025. Despite the discounted pricing, the company projects no major investment risks. WASL has mitigated potential undersubscription and market perception risks by securing commitments from the Modaraba Company to absorb any unsubscribed certificates.
The certificate transfer books will be closed from October 14 to October 28, 2025, a period during which no transfers will be processed. Certificate holders are urged to update their addresses with the Share Registrar to ensure receipt of relevant documents and notifications.
Participants intending to join the Annual Review Meeting via video conference must register by October 21, 2025. The Modaraba has made its annual report available online and offers to provide hard copies upon request.
Wasl Mobility Modaraba also encourages certificate holders to transition from physical certificates to book-entry form, in compliance with the Companies Act, 2017. Holders with unclaimed dividends should contact the Share Registrar for assistance.