KARACHI, Dec 22: The board of directors of M.F.M.Y Industries has decided to buyback shares from the minority shareholders at the rate of Rs.11.50 per share, leading to its subsequent delisting from the Karachi Stock Exchange as sought by the management.

The buyback price has already been approved by the Karachi Stock Exchange and the company’s board meeting will be held on Dec 28, to give green signal for the moping operation, according to KSE sources.

The management has already announced a cash dividend of 10 per cent for the financial year ended Sept 30, 2001 but its 10-rupee share is being quoted at Rs8.

Owing to some financial constraints and managements’ inability to meet some of the legal listing requirements, about a dozen companies have applied for delisting their shares from the trading board of the KSE, a move alien to the capital market since its inception, market sources said adding many more may follow them in the years to come.

The M.F.M.Y Industries will be the 12th company, which has sought delisting from the trading board of the KSE owing to trading losses after having purchased shares from the minority shareholders, a condition laid down by the relevant authorities to safeguard the interests of the investors.

Incidentally, it (Rs.11.50) will be the lowest buyback rate as compared to others, the highest being Rs.75 offered by Philips Electrical Industries for its 10-rupee share, stock analysts said. Other listed companies have offered to buyback the floating stock between Rs.13.75 and Rs.22.50,the second-best rate being of Syed Match Company for a 10-rupee share.

Having a paid-up capital of Rs46.200m, the company is one of the oldest companies listed on the Karachi Stock Exchange in 1964, engaged in the Textile business. Until early 80s, it was ranked among the blue chips but has been facing some financial problems since the worldwide recession gripped the textile industry.

The other companies, which are in the process of delisting after having boughtback minority shares include Karim Silk, Karim Cotton Mills, Abbas Engineering, Ahmed Oriental Textiles, Farooq Habib Textiles, Pak Panther Spinning, Benz Industries, Syed Match, Philips Electricals, International Floor Covering, and Taj Medical Complex.