Strength-6

⚡ Flash Summary

WASL Mobility Modaraba announced an upcoming Annual Review Meeting (ARM) to be held on October 28, 2025, to review performance for the year ended June 30, 2025. The meeting will also address a special resolution regarding the approval for the issuance of right Modaraba certificates. This involves increasing the authorized certificate capital and paid-up certificate capital of WASL, issuing additional certificates at a discounted price to existing holders and the Modaraba Company (sponsor). The purpose of the right issue is to replace a shareholder loan with new equity injection, aiming to improve profitability by reducing short-term loan return expenses, which amounted to Rs. 25,621,505 for the year ended June 30, 2025.

📌 Key Takeaways

• 🗓️ Annual Review Meeting (ARM) scheduled for October 28, 2025.
• 📜 Reviewing Modaraba performance for the year ended June 30, 2025.
• ✅ Approving issuance of right Modaraba certificates as a special business item.
• ⬆️ Increasing authorized certificate capital from 152,217,660 to 200,000,000 certificates.
• 💸 Increasing paid-up certificate capital from 129,391,676 to 160,717,400 certificates.
• 🆕 Issuing 31,325,724 additional Modaraba certificates.
• 📉 Offering certificates at a discounted price of Rs. 4.74 (52.6% discount) for existing holders.
• 🤝 Offering certificates to the Modaraba Company (sponsor) at Rs. 5.27 (47.3% discount).
• 比例 Offering 24.21 right modaraba certificates for every 100 certificates held.
• 🏦 Replacing a shareholder loan of Rs. 150 million with a new equity injection.
• 📈 Aiming to improve profitability by reducing short-term loan return expenses.
• 💰 Short-term loan return expenses amounted to Rs. 25,621,505 for the year ended June 30, 2025.
• 🔒 Certificate Transfer Books to be closed from October 14 to October 28, 2025.
• 🌐 Certificate holders can attend the ARM through an online platform by registering before October 21, 2025.

🎯 Investment Thesis

Given the company’s move to replace debt with equity and the potential dilution from the discounted right issue, a HOLD recommendation is appropriate. Investors should monitor WASL’s ability to effectively deploy the new capital and improve profitability. The price target is dependent on successful execution and tangible improvements in financial performance over the next 12-18 months. The long-term prospects depend on how the company uses the new capital.

⚡ Flash Summary

Wasl Mobility Modaraba (WASL) has announced an upcoming Annual Review Meeting on October 28, 2025, to review the Modaraba’s performance for the year ended June 30, 2025. A key agenda item is the approval for the issuance of right Modaraba certificates to increase the authorized and paid-up certificate capital. The company aims to raise capital by offering certificates at a discounted price of Rs. 4.74 for existing holders and Rs. 5.27 for the Modaraba Company (sponsor), presenting a 24.21% right issue.

📌 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.