August 9, 2019 (MLN): The Board of Directors of Nishat Chunian Limited in its meeting held today i.e. August 09, 2019 has decided to recommend to the members for their approval by passing a special resolution, the purchase/buyback of up to 32 million issued ordinary shares of the face value of Rs. 10 each, at a purchase price of Rs. 32 per share.
As per the official announcement of the company, the period of purchase will be from September 9, 2019 to October 8, 2019.
The company in its announcement stated that the purchase will improve the Earnings per share (EPS) and dividend payouts. This will also provide an opportunity of exit to those members who wish to liquidate their investments.
The purchase will have positive effect on the financial position of the company as the company will utilize available funds to purchase capital which is in excess of the company’s requirements. The reduced capital would consolidate equity which will improve EPS, future dividends and break-up value of the Company’s share.