The Board of Directors (BoD) of NetSol Technologies Limited has decided to purchase 10 million ordinary shares of the company, it said in a notice to the bourse on Monday.
“The Board of Directors of NetSol Technologies Limited (hereinafter the “Company”) in its meeting held today i.e., November 25, 2024, has decided to recommend to the members for their approval by passing a special resolution.
As part of this decision, the board has approved “the sale of 2 million treasury shares to eligible employees in accordance with the company’s share option scheme and the applicable provisions of the Listed Companies (buy-back of shares) Regulations, 2019,” read the notice.
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Moreover, the BoD has also recommended the buyback/purchase of 10 million issued ordinary shares of the company of the face value of Rs10 each under Section 88 of the Companies Act, 2017.
“The shares shall be purchased from time to time at the spot/current share price acceptable to the Company prevailing during the purchase period as per Section 88 (8) & Listed Companies (buy-back of shares) Regulations, 2019 Reg.8 (2).”
The company shared that the purchase period will be from January 03, 2025, to June 29, 2025 or till such date that purchase is complete, whichever is earlier.
“The purchase will be made out of distributable profits of the company using its own funds,” said the company.
NetSol Technologies said that the buy-back is expected to positively impact the company’s financial position, including an increase in the break-up value and earnings per share.
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“This buy-back also offers an exit opportunity for members who wish to fully or partially liquidate their investment, including those unable to do so during the previous buy-back,” it said.
As per the notice, these recommendations must be approved by shareholders through a special resolution.
The notice sent NetSol’s share price upwards during intra-day trading. Netsol’s share price gained Rs8.96 to close at Rs135.68 at the end of trading on Monday.
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