KARACHI: The Nishat Chunian share buyback proposal would see the textile company repurchase up to 21 percent of its issued and paid-up shares, covering a maximum of 50.42 million ordinary shares, roughly five crore shares.
The textile company’s board recommended the move on October 21. A special resolution will be placed before shareholders at an extraordinary general meeting scheduled for November 20, 2026.
The buyback remains subject to shareholder approval. The company has not fixed a separate buyback price. Instead, it will purchase shares through the Pakistan Stock Exchange at the prevailing market price at the time of purchase.
The shares carry a face value of Rs10 each. Nishat Chunian said it intends to cancel the shares it acquires under the programme.
How the Nishat Chunian share buyback will work
The proposed purchase period will run from November 28, 2026, to May 19, 2027, or until the buyback is completed, whichever comes first.
The company said the purchase will be funded from its distributable profits, in accordance with the Companies Act, 2017. That means the buyback will be paid for out of profits the company is legally allowed to distribute.
Nishat Chunian said the buyback could improve its earnings per share by reducing the number of shares in circulation. It would also give shareholders who want to liquidate their investments a chance to exit at the market price.
Because the purchase happens at the prevailing market price, the total amount the company ends up spending will depend on where the share price trades during the purchase window.
Strong quarterly results announced the same day
The buyback proposal landed alongside the company’s first-quarter results for FY2026-27, which the board also approved on October 21.
Nishat Chunian posted a profit after tax of Rs1,592.5 million for the quarter ended September 30, 2026, with earnings per share of Rs6.63. That compares with a profit of Rs522.4 million and EPS of Rs2.18 in the same quarter last year.
The market reacted strongly. According to PSX data reported by KSEAlert, the NCL share closed at Rs38.05 on October 21, up 10 percent on the day.
The combination of record quarterly profits and a large buyback signals that the company’s board sees value in its own shares at current levels.
What shareholders must decide on November 20
The extraordinary general meeting on November 20 will vote on the special resolution authorising the buyback.
If shareholders approve, the company can start purchasing its own shares from the market from November 28 onwards. The cancelled shares will shrink the company’s equity base, which typically lifts earnings per share for the remaining shareholders.
Investors will watch the purchase window closely. A steady buyback through the exchange can also provide support to the share price over the coming months.
Frequently asked questions
What is the Nishat Chunian share buyback?
Nishat (Chunian) Limited has proposed buying back up to 50.42 million of its own shares, about 21 percent of its issued capital, through the PSX at the prevailing market price.
When will the buyback happen?
The purchase period is set for November 28, 2026, to May 19, 2027, subject to shareholder approval at the extraordinary general meeting on November 20, 2026.
Why is Nishat Chunian buying back shares?
The company says the buyback could improve earnings per share by reducing outstanding shares and gives shareholders who want to exit an opportunity to sell at the market price.
