The Board of Directors of NetSol Technologies Limited (PSX: NETSOL) has approved important decisions aimed at strengthening 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 stock options program and the launch of a repurchase plan for issued common stock.
The Board of Directors recommended the sale of 2 million treasury shares to eligible employees as part of the Company’s stock option plan. This initiative is expected to enhance employee ownership and morale while aligning their interests with the company’s long-term goals.
Treasury stock is stock that the company has repurchased but not cancelled. These shares are held in the company’s account and can be reissued, sold or withdrawn at a later date.
The Board of Directors also approved a buyback plan of up to 10 million issued ordinary shares of the company, each having a nominal value of Rs. 10. The buyback will take place under Section 88 of the Companies Act 2017, in conjunction with the relevant buyback regulations.
The repurchase will take place from January 3, 2025 to June 29, 2025, or until the entire target number of shares are purchased at the prevailing spot price, whichever comes first. The buyback will be financed using the company’s distributable profits, using internal resources rather than external borrowing.
The company’s management expressed confidence that the buyback process will have many positive effects on the company’s financial position, such as increasing earnings per share (EPS), enhancing retail 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 AM 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.
