Engro Holdings Limited, one of Pakistan’s largest conglomerates, has announced plans to buy back up to 45 million of its ordinary shares, representing approximately 3.73% of its total outstanding shares.
The development was observed in a notice to the Pakistan Stock Exchange (PSX) on Monday.
The company intends to purchase the shares through the PSX at the current market price, in line with the Listed Companies (Buy-Back of Shares) Regulations, 2019.
“The purchase of shares shall be made in cash and shall be out of the distributable profits as required under Section 88(8) of the Companies Act, 2017,” read the disclosure.
According to the disclosure, the buyback will be executed over a period from May 7, 2026, to October 25, 2026, or until completion, whichever is earlier.
“The purchase/buy-back of the company’s issued ordinary shares will improve the cashflow per share of the company. Further, it will provide an exit opportunity to those members who wish to liquidate their investments,” read the notice.
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The proposal will be presented for approval at the company’s Annual General Meeting (AGM) scheduled for April 28, 2026.
Market participants typically view share buybacks as a signal of strong liquidity and management’s confidence in the company’s valuation, as reducing the number of outstanding shares can support earnings per share.
Engro Holdings Limited, previously Dawood Hercules Corporation Limited, was incorporated in Pakistan on April 17, 1968, as a public limited company under the Companies Act, 1913 (now the Companies Act, 2017).
The principal activity of the company is to manage investments, including in its subsidiaries and associated companies.
At the time of filing, the share price of Engro Holdings was hovering at Rs259.75, down by Rs12.09 or 4.45%.
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