In accordance with the Share Option Scheme of the company and the Listed Companies (Buy-back of Shares) Regulations, 2019, the Board of Directors of NetSol Technologies Limited (PSX: NETSOL) has approved the sale to eligible employees of 2 million treasury shares. This decision was made during their meeting on November 25, 2024.
The repurchase/purchase of issued ordinary shares, Rs. 10 face value each, shall be made under Section 88 of the Companies Act, 2017. Some of the important features of the buyback plan are as follows:
Total shares to be bought back: Up to 10 million shares
Purpose: Treasury shares
Purchase Price per Share: The purchase price would be at the prevailing spot/current share price prevailing during the period of purchase.
Purchase Period: January 3, 2025, to June 29, 2025, or until the purchase is completed, whichever is earlier…
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Source of Funds: The purchase will be made out of distributable profits through the company’s own funds.
Reason: And hence the effect: Positive impact on financials as it leads to higher break-up value and earnings per share and provides an exit option to shareholders who wish to sell their investments.
EOGM meeting of the Board of Directors has been planned on December 31, 2024, to take approval from the shareholders over the Buyback Plan. Shares of NetSol closed at Rs .135.68, with a gain of 7.07% or Rs .8.96 with 5.47 million shares traded on Monday.