The company told the Pakistan Stock Exchange on Thursday it would buy a further 100 million units of its own stocks at the prevailing market price among October 27, 2023, and April 15, 2024.With each stock authorization, the procedure is scheduled to begin on October 27th, 2023, and end on April 15th, 2024.
The profits made by the business will be utilized for funding the purchase, thereby showing the stability of the company’s financial standing. Shares would be boosted in exchange for an improvement in the cost of capital, higher earnings per share, prospective cash dividends, or the split of the worth of the company’s common stock after it has been obtained. In addition, it provides members the option to depart if they decide to offer up their assets at a fair price.
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Due to the official submission, “the sale will have a favorable impact on the company’s financial condition since it will boost EPS, future dividend payouts, and the share’s value upon separation.”
MLCF successfully executed a twenty-five million stock purchase at a cost of Rs. 26.77 each share the previous year, showing an aggressive approach for improving the value of its shareholders. MLCF recently decided to purchase one hundred million shares at the current market price Rs. 2.9 billion, showing an unwavering trust in the company that underlies value. At present, the market value of the company exceeds Rs. 30.99 billion.
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MLCF considers it especially beneficial to repurchase its own shares because they are currently worth significantly less than the company’s replacement value.