KARACHI: Lucky Cement Ltd said in a regulatory filing with the Pakistan Stock Exchange on Thursday that it’ll purchase 23.8 million of its shares in a second buyback starting next Friday (June 2).

The buyback exercise, which will be carried out using the firm’s distributable profits, will continue until Nov 20. Afterwards, the cement maker will cancel the shares, which constitute about 7.6 per cent of the current paid-up capital of the company.

At the going rate of Rs477.86 apiece, the exercise will cost the cement maker roughly Rs11.4 billion.

The firm already completed its first buyback, which consisted of 10m shares, in March at a total cost of Rs4.35bn. The practice of listed firms buying back their shares is becoming increasingly popular in Pakistan. The total number of shares goes down once a company conducts a share buyback for cancellation.

As a result, its break-up value and profit per outstanding share go up. However, some analysts oppose the practice on the pretext that the exercise deprives the stock exchange of valuable shares.

Published in Dawn, May 26th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

A state of chaos

A state of chaos

The establishment’s increasingly intrusive role has further diminished the credibility of the political dispensation.

Editorial

Bulldozed bill
Updated 22 May, 2024

Bulldozed bill

Where once the party was championing the people and their voices, it is now devising new means to silence them.
Out of the abyss
22 May, 2024

Out of the abyss

ENFORCED disappearances remain a persistent blight on fundamental human rights in the country. Recent exchanges...
Holding Israel accountable
22 May, 2024

Holding Israel accountable

ALTHOUGH the International Criminal Court’s prosecutor wants arrest warrants to be issued for Israel’s prime...
Iranian tragedy
Updated 21 May, 2024

Iranian tragedy

Due to Iran’s regional and geopolitical influence, the world will be watching the power transition carefully.
Circular debt woes
21 May, 2024

Circular debt woes

THE alleged corruption and ineptitude of the country’s power bureaucracy is proving very costly. New official data...
Reproductive health
21 May, 2024

Reproductive health

IT is naïve to imagine that reproductive healthcare counts in Pakistan, where women from low-income groups and ...