Allied Rental Modaraba (ARM) at the time of declaring of its financial results for the year ended 30th June 2015 (FY15) also announced issue of 20 percent Right certificates. The stated objective was to raise the value of certificates issued as well as to further expand its asset base. The last date for exercising the right was 12th January 2016. The certificates were to be issues at a premium Rs13.3 per certificate.
It may be worth mentioning that along with payment of premium the cost per certificate came to Rs23.30, whereas the book value per at end year FY15 worked out to Rs25.33. The certificates were traded at Rs40.90 at local stock exchanges at that time. This offered an attractive opportunity to the certificate holders to avail the opportunity.
ARM had also announced cash dividend of 20 percent for the year FY15 despite substantial reduction in earnings. The Modaraba had posted net profit of Rs 404 million profit (EPC: Rs2.89) for FY15 as compared to net profit of Rs651 million (EPC: Rs5.52) a year ago.The Modaraba had also paid 30 percent cash dividend for last three consecutive years from FY12 to FY14. The Modaraba had also paid Stock Dividend for three consecutive years from FY 11 to FY 13, the highest being 25% for FY 11. However, with the taxation of Bonus Shares from FY14, there is no declaration of Bonus Certificates since then.