NetSol Technologies Limited has announced plans to repurchase 10 million ordinary shares and sell 2 million treasury shares to employees as part of its share option scheme. The decision, finalized during a Board of Directors (BoD) meeting on November 25, 2024, is pending shareholder approval through a special resolution.
Key Details of the Buy-Back Program
NetSol aims to repurchase 10 million issued ordinary shares, each valued at Rs10, at the prevailing market price. The buy-back period begins on January 3, 2025, and will end by June 29, 2025, or earlier if the target is achieved. The company plans to finance this initiative using internal funds from its distributable profits.
This buy-back program intends to boost NetSol’s financial strength by increasing the break-up value per share and enhancing earnings per share (EPS). It also offers an exit option for shareholders who missed the previous buy-back opportunity.
In addition, NetSol will sell 2 million treasury shares to eligible employees, aligning with the Listed Companies (Buy-Back of Shares) Regulations, 2019.
Positive Market Reaction
The announcement triggered a sharp rise in NetSol’s share price, which climbed by Rs8.96 during intra-day trading to close at Rs135.68 on Monday.
Shareholder Approval and Market Context
The proposed buy-back and treasury share sale require shareholder approval through a special resolution in an upcoming meeting.
Unlike companies such as Pak Suzuki Motor Company, which are exploring delisting from the Pakistan Stock Exchange due to financial struggles, NetSol’s initiative highlights its confidence in long-term growth and commitment to enhancing shareholder value. The move is expected to strengthen investor sentiment and further cement NetSol’s reputation in Pakistan’s tech industry.
