Everything about TRG is convoluted and roundabout, making it surprising how the company remains listed and actively traded.
The Pakistan Stock Exchange (PSX) lists TRG under the 'Technology and Communication' sector. Initially, TRG had obtained a venture capital license from the SECP under NBFC rules. After holding this license for ten years, the company forfeited it. Currently, TRG states that its primary activity, through its associate The Resource Group International Limited (TRGIL), is to invest in a portfolio focused on the technology and IT-enabled services sectors.
TRG’s entire asset base consists of just one company, The Resource Group International Limited (TRGIL), registered in Bermuda. TRG owns 68.8% of TRGIL and holds a 100% beneficial interest in it. However, due to existing agreements, TRG cannot appoint the majority of TRGIL’s board members or control more than 50% of its voting power.
While TRG has frequently issued rights, it has only paid a meaningful cash dividend once in the last 20 years.
With its opaque structure and business activities, it’s unclear what benefits shareholders expect or how the future will differ from the past.
In its latest financial results for the year ending June 2024, TRG reported a loss of Rs. 56 per share. It also noted that "The Sindh High Court has restricted the company from holding its AGM. The court's order remains in effect, preventing the company from holding the AGM until the High Court of Sindh allows it to proceed."
Over the last three years, TRG’s stock price on the PSX has dropped from around Rs 160 to below Rs 50 per share. See TRG SnapShot.
