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Karachi, In a significant move to bolster its financial standing, Popular Islamic Modaraba Management Company (Pvt.) Limited, the manager of Popular Islamic Modaraba, has passed a crucial resolution to increase its capital and expand its authorized funds. The resolution, adopted by circulation among the Board of Directors on June 21, 2024, outlines a series of financial maneuvers and strategic initiatives aimed at strengthening the company’s market position.
According to information available from the Pakistan Stock Exchange (PSX), the resolution entails an investment of Rs. 100 million into the Modaraba, with Rs. 40 million already injected and converted into equity as “Other than Right Certificates.” The remaining Rs. 60 million has been provided as a loan, also slated for conversion into equity under similar terms. This move is in compliance with directives issued by the Securities and Exchange Commission of Pakistan (SECP) in 2021 and 2023, ensuring the Modaraba adheres to regulatory expectations and capital requirements.
Further to this financial restructuring, the company has resolved to increase the authorized funds of Modaraba from Rs. 140 million to Rs. 200 million. This expansion will involve issuing new certificates worth Rs. 60 million at a par value of Rs. 10 per certificate, subject to the approval of the Registrar Modaraba at the SECP.
Mr. Kamran Hussain Mughal, Director and Chief Executive of the management company, has been authorized to oversee these changes, including securing necessary approvals and fulfilling all regulatory formalities. This strategic financial enhancement is expected to significantly improve the operational capabilities and investment potential of Popular Islamic Modaraba.
The resolution by the board signifies a proactive approach in adapting to the evolving financial landscape and aligning with regulatory standards to foster growth and stability within the Modaraba sector.