Posted by: Jabran Kundi
Post Date: November 30, 2023
Lucky Cement cancels 20.3 million shares after completing 2nd buy back
In a notification sent to the PSX on 30/11/2023, Lucky Cement (LUCK) confirmed the buyback and cancellation of 20,375,000 shares of the company after completing its 2nd buyback program.
After the cancellation of these shares, the company’s issued and paid-up share capital is Rs. 2,930,000,000/- dividend into 293,000,000 shares of Rs. 10 each. LUCK had announced its plans to buy back 23.8 million shares earlier in the year but could only buy back 20.75 million shares before the last date. This was the second buyback this year, with the first one amounting to buyback and cancellation of 10 million shares earlier in the year.
Comments (4)
Theoretically free float shares are less now. But as these shares are already out of market due to sustained slow buyback, therefore do not expect much change in price except for the one already going on due to bullish market.
Yes. There should be no expectation of a rally based on this information alone. There was a rally when the buy back was announced earlier in the year.
Does this mean that buying back and then cancelling shares would up the price of the remaining shares?
Yes. In general, it has a positive effect on the stock price.