⏸️ WASL: HOLD Signal (6/10) – NOTICE OF ANNUAL REVIEW MEETING -2025

📌 Key Takeaways

• 🗓️ Annual Review Meeting scheduled for October 28, 2025.
• 🏢 Meeting to be held at Lahore Chamber of Commerce and Industry.
• 💼 Agenda includes reviewing Modaraba performance for the year ended June 30, 2025.
• ✅ Approval sought for issuance of right Modaraba certificates.
• ⬆️ Increase in authorized certificate capital from 152,217,660 to 200,000,000 certificates.
• 💰 Each certificate has a face value of Rupees 10.
• 💸 Right issue of 31,325,724 additional modaraba certificates.
• 🏷️ Issue price of Rs. 4.74 per certificate for existing holders (52.6% discount).
• 🏦 Issue price of Rs. 5.27 per certificate for the Modaraba Company (47.3% discount).
• 🔣 Right issue ratio: 24.21 right certificates for every 100 held.
• 🔒 Allotment subject to regulatory approvals (SECP).
• 📜 Existing paid-up capital to increase from 129,391,676 to 160,717,400 certificates.
• 🏦 Right issue aims to replace shareholder loan of Rs. 150 million from PBICL.
• 📈 Expectation of enhanced returns due to savings on short-term loan interest of Rs. 25,621,505.

🎯 Investment Thesis

Based on the announcement, a HOLD recommendation is appropriate. While the move to replace debt with equity is generally positive, the lack of detailed financial information makes it difficult to assess the overall impact. The discounted rights issue poses dilution risk, and the success depends on full subscription. The time horizon depends on the company’s ability to improve profitability and achieve growth after restructuring its capital.