NetSol Technologies Limited (PSX: NETSOL) has announced its decision to sell 2 million treasury shares to eligible employees as part of the company’s Share Option Scheme. This decision was made during a Board of Directors meeting held on November 25, 2024. The sale will be conducted in accordance with the Listed Companies (Buy-back of Shares) Regulations, 2019.
In addition to the sale of treasury shares, the Board has also recommended a new buyback plan for shareholder approval. The company plans to repurchase up to 10 million ordinary shares, each with a face value of Rs. 10, under Section 88 of the Companies Act, 2017, and the relevant buy-back regulations.
Key Features of the Buyback Plan:
- Number of Shares: Up to 10 million shares
- Purpose: To hold as treasury shares
- Purchase Price: Shares will be bought at the prevailing market price during the purchase period, as per regulatory guidelines.
- Purchase Period: From January 3, 2025, to June 29, 2025, or until the buyback is complete, whichever comes first.
- Source of Funds: The buyback will be financed from the company’s distributable profits using its own funds.
- Financial Impact: The buyback is expected to enhance the company’s financial position by increasing the break-up value and earnings per share. It also provides an exit opportunity for shareholders wishing to liquidate their investments, including those who missed out on previous buyback opportunities.
To finalize these plans, NetSol Technologies will hold an Extra-Ordinary General Meeting (EOGM) on December 31, 2024, to seek shareholder approval.
On the stock market, NetSol’s shares closed at Rs. 135.68, marking a 7.07 percent increase, or Rs. 8.96, with a trading volume of 5.47 million shares on Monday.
