The board of directors of Allied Rental Modarba has decided to issue 20 percent right certificates ie one new certificate for every five certificates held at a premium of Rs 9 per certificate. "The management is continuously expanding its rental fleet, both in the power generation rental business and logistics business, where it sees potential for investment and growth", information sent to the Karachi Stock Exchange on Wednesday stated.
It is planned that around one billion rupees would be invested in new rental assets to ensure that Modaraba remains the leader in the power engine rental business and manages to avail of the opportunity in the logistics business with bluechip companies, it added.
This growth would be financed from internal cash generation through retention of profits, financing from Islamic banks, Modarabas and an Islamic window of conventional banks.
"Apart from these financing avenues available to the Modaraba, we feel that there is an opportunity for our certificate holders also to invest in this growth of the Modaraba and accordingly the board of directors has decided to issue 20 percent right certificates", it said. The premium is worked out based on the basis of break-up value of the certificate as per audited financial statements of Modaraba as at June 30, 2012.
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