June 22, 2023 (MLN): The board of directors (BoD) of Lucky Cement Limited (PSX: LUCK) has decided reclassify a sum of Rs116 billion from the revenue reserves to separate capital reserves, the company’s filing on PSX revealed today.
“The BoD discussed that over the years the company has continued with its expansion and diversification strategy and has made significant investments that have enhanced enterprise value for the shareholders,” the notice reads.
Moreover, the company carried out a buyback at a weighted average price of Rs514.41 of 641,800 shares on June 21, 2023.
The board noted that because of these reasons, the general reserves of the company have been utilized and are not entirely available for distribution as dividends.
The total balance of Rs116bn of general reserves and unappropriated profits is reclassified into capital reserve against long-term investments, capital reserve against capacity expansions, and capital redemption reserve u/s 88 of the Companies Act, 2017 amounting Rs40bn, Rs40bn and Rs36bn respectively.
