The Board of Directors of NetSol Technologies Limited (PSX: NETSOL) has approved significant decisions aimed at enhancing the company’s financial position and providing value to its shareholders. These decisions include the sale of 2 million treasury shares to employees under the company’s Share Option Scheme and the launch of a buyback plan for issued ordinary shares.
The board has recommended the sale of 2 million treasury shares to eligible employees as part of the Company’s Share Option Scheme. The initiative is expected to boost employee ownership and morale while aligning their interests with the company’s long-term goals.
Treasury shares are shares that a company has repurchased but not cancelled. These shares are held in the company’s account and can be reissued, sold, or retired at a later date.
The board has also approved a buyback plan for up to 10 million issued ordinary shares of the company, each with a face value of Rs. 10. The buyback will occur under Section 88 of the Companies Act, 2017, in conjunction with the relevant buyback regulations.
The buyback will be conducted from January 3, 2025, to June 29, 2025, or until the entire targeted number of shares is purchased at the prevailing spot price, whichever comes first. The buyback will be financed using the company’s distributable profits, utilizing internal resources rather than external borrowing.
The company management has expressed confidence that the buyback will have several positive effects on the company’s financial position such as an increase in Earnings Per Share (EPS), an enhancement in break-up value, and additional liquidity for shareholders.
To seek shareholder approval, the company has scheduled an Extraordinary General Meeting (EOGM) on December 31, 2024, at 11:00 a.m. in Lahore. Shareholders of record as of December 23, 2024, will be eligible to attend and vote. The share transfer books will remain closed from December 24 to December 31, 2024, for this purpose.
