The Board of Directors of JS Investments Limited, a subsidiary of JS Bank Limited, has approved a plan to buy back up to 4.63 million of its ordinary shares, representing 7.5% of its total outstanding shares.
The company shared this development with the Pakistan Stock Exchange (PSX) through a notice in accordance with the requirements of the Securities Act, 2015 and Rule Book of the PSX.
The decision was taken during a board meeting held on September 11, 2024, where the board recommended the buy-back to the company’s shareholders for approval in an Extraordinary General Meeting scheduled for October 14, 2024.
“The Board of Directors of JS Investment Limited in its meeting held on September 11, 2024, has recommended to the members of the Company for their approval by passing special resolution, the purchase/buy-back of up to 4,630,000 issued ordinary shares of the Company of the face value of Rs.10/- (Rupees Ten) each in accordance with Section 88 and all other applicable provisions of the Companies Act, 2017 read with the Listed Companies (Buy-Back of Shares) Regulations, 2019 (“Buy-Back”),” read the notice.
The share buy-back, subject to shareholder approval, will be conducted through the PSX at the prevailing market price during the purchase period from October 21, 2024, to December 20, 2024, or until the buy-back is complete.
According to the company, the purpose of the buy-back is to hold the shares as treasury shares. The board believes the move will enhance the break-up value and earnings per share (EPS) of the company, providing an opportunity to shareholders who wish to liquidate their holdings.
The company emphasized that the share buy-back will have a positive impact on its financial position, adding value to shareholders.
The member’s register and share transfer books will remain closed from October 7, 2024, to October 14, 2024, with October 11 being the deadline for transfers to be eligible for attending the meeting.
The company said it will communicate further details regarding the meeting through PUCARS, and has urged all relevant stakeholders to stay updated on the proceedings.
