⚡ Flash Summary
Trust Securities & Brokerage Limited (TSBL) has announced an Extraordinary General Meeting (EOGM) to be held on December 17, 2025. The primary agenda includes the subdivision of the company’s share capital, changing the face value from Rs. 10 to Re. 1 per share, effectively increasing the number of shares tenfold. Additionally, the meeting will seek approval for the formation of a wholly-owned Information Technology (I.T.) subsidiary to enhance operational capacity and explore new revenue streams. The board believes this will increase market liquidity and investor accessibility.
📌 Key Takeaways
- 🗓️ EOGM scheduled for December 17, 2025, to discuss share subdivision and I.T. subsidiary formation.
- ✂️ Share subdivision proposed: Rs. 10 face value to Re. 1, increasing shares tenfold without altering total capital.
- 💰 Authorized capital to be subdivided from 75,000,000 shares of Rs. 10 to 750,000,000 shares of Re. 1.
- 💸 Issued/subscribed/paid-up capital to be subdivided from 30,000,000 shares of Rs. 10 to 300,000,000 shares of Re. 1.
- 💻 Approval sought for establishing a wholly-owned I.T. subsidiary.
- 🚀 I.T. subsidiary to focus on software development, system integration, data centers, digital transformation, and data analytics.
- 📈 The goal is to enhance operational capacity and create new revenue opportunities through the I.T. subsidiary.
- ✅ Board recommends the share subdivision and I.T. subsidiary formation.
- 📜 Amendments to Memorandum and Articles of Association to reflect the share subdivision.
- 🔒 Share transfer books to be closed from December 11, 2025, to December 17, 2025.
- 🗳️ E-voting and postal ballot options available for members.
- 🌐 Notice of EOGM and ballot paper available on the company’s website: www.tsbl.com.pk.
- ✉️ Duly filled ballot papers to reach the Chairperson by December 16, 2025.
- 🔑 Proxy forms to be submitted at least 48 hours before the meeting.
- ℹ️ Contact info@tsbl.com.pk for queries and information.
🎯 Investment Thesis
HOLD. While the share subdivision is a procedural change aimed at improving liquidity, the creation of an IT subsidiary signals a strategic intent to diversify and grow. However, the financial and operational impacts of the subsidiary are uncertain. A ‘Hold’ recommendation is appropriate until more information is available on the performance and potential of the IT subsidiary. The benefits of the stock split are hard to quantify. Without further data, any price target is purely speculative.
Disclaimer: AI-generated analysis. Not financial advice.