Categories: News

PSMC buyout price determined at Rs. 609 by PSX

In a notification sent to the PSX on 15/01/2024, the Voluntary Delisting Committee of the PSX announced that it had determined the minimum PSMC buyback price to be Rs. 609. Pakistan Suzuki Motors Company (PSMC) had initially offered a buyback price of Rs. 406.

What happens now?

PSMC has 10 days to respond to this announcement. If it accepts the determined price, then shareholders of the company can expect to receive at least Rs. 609 per share.

However, in case the company rejects this assessment, it has the option of withdrawing its initial delisting notice. Were that to happen, the stock price is likely to crash to the pre-delisting price of around Rs. 150. Considering this risk, and its current price of Rs. 774.61 at close today, it is unlikely that shareholders can benefit from buying the stock currently. We already covered that price arbitrage at this point is too risky with minimal upside.

The price should settle somewhere below Rs. 600 in the next few days.

KSEStocks News

View Comments

Recent Posts

AGP Healthcare for a Better Tomorrow

AGP Limited (AGP) monthly market structure is showing strong bullish trend. Even this stock broke…

2 days ago

Why dividends cause share price drop if they’re paid from earnings?

When a dividend is paid, the share price drops by approximately the same amount because…

2 weeks ago

MUGHAL right shares – 3 things to know before subscribing

On November 5, 2024, Mughal Iron & Steel Industries Limited (MUGHAL) announced a unique rights…

3 weeks ago

How to analyze pharmaceutical sector

How to analyze pharma sector companies in PSX. Pakistan's pharma sector is considered a complicated…

4 weeks ago

Shifa International (SHFA) has returned 150% in two months, will the rally continue?

Shifa International (SHFA) has already rallied 150%, but there is still more upside to the…

1 month ago

How is HMB handling financial challenges to grow?

Habib Metropolitan Bank Limited (HMB) recently released its second-quarter results for 2024, revealing a mixed…

3 months ago