Lucky Cement to buy back 23.8m shares

Lucky Cement has decided to buy back 7.59% of its shares, or 23.80 million, at the prevailing market price between June and November 2023 in a second buyback by the company.

The purpose was to cancel the shares, meaning they would not be available for sale in the market, said Lucky Cement.

The board recommended the purchase/ buyback as the same would have a positive effect on the future financial position of the company, including the break-up value of the company’s shares and its earnings per share (EPS), it added.

The buyback would also provide an exit opportunity to those members “who wish to liquidate their investment, fully or partially, including those who were unable to do the same during the previous buyback”, Lucky elaborated.

The company’s share price hit its upper limit at 7.5%, or up by Rs30.08, and closed at a four-month high at Rs431.25 with trading volume of 769,270 shares.

“Based on the current share price, it translates into Rs10 billion buyback,” according to Topline Research.

Published in The Express Tribune, May 3^rd, 2023.

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