The board of directors of NetSol Technologies Limited has recommended that shareholders approve a buyback of up to 4 million ordinary shares, which is equal to about 4.45 percent of the current issued and paid up capital of the company. The recommendation was made at a board meeting on October 30, 2026. The proposal covers ordinary shares with a face value of Rs. 10 each, and it requires approval through a special resolution of the members. The shares that are repurchased will be held as treasury shares, which means that the company will keep them and will not cancel them at the time of purchase.
The shares will be bought from time to time at the spot price that is acceptable to the company and that prevails during the purchase period. The period runs from December 11, 2026, to June 1, 2027, or until the purchase is complete, whichever comes earlier. Since the buyback will be carried out at the spot price, the company will ensure that funds are available for the shares to be purchased. The actual purchases will depend on varying factors during the period, including market conditions, and the buyback will be funded from the distributable profits of the company.
The board expects the buyback to have a positive impact on the financial position of the company, including an increase in break up value and in earnings per share. It also offers an exit to members who wish to fully or partially liquidate their investment, including those who could not do so during the previous buyback. This point shows that the company sees the proposal as serving two groups, the shareholders who remain invested, who may gain from the higher value per share, and those who wish to sell, who will have a way of doing so at the prevailing market price.
The board has decided to convene an Extraordinary General Meeting (EOGM) on December 3, 2026, in Lahore to seek the approval of shareholders. The information was shared with the exchange through a notification to the Pakistan Stock Exchange. The proposal therefore depends on the vote at the meeting, and the purchase period will begin on December 11, 2026, only if the special resolution is passed. The announcement comes alongside the results of the company for the first quarter of the fiscal year, in which net profit rose more than fourfold.
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