Capital structure boost: Engro Holdings plans 45m shares buyback

KARACHI: Engro Holdings Limited has announced plans to repurchase up to 45 million of its issued and paid-up ordinary shares from the open market as part of a strategic share buy-back programme aimed at enhancing shareholder value and optimizing its capital structure.

The decision was taken at a meeting of the company’s Board of Directors held on March 27. The proposed buy-back represents approximately 3.73 percent of the company’s outstanding share capital, with each share carrying a face value of Rs10.

According to the company’s disclosure to the Pakistan Stock Exchange (PSX), the repurchase will be carried out through market transactions at prevailing prices. Shares acquired under the programme will be cancelled, resulting in a reduction in the company’s total share capital.

Engro Holdings said the buy-back will be financed entirely through its distributable profits in accordance with Section 88(8) of the Companies Act, 2017. The company stated that the initiative is expected to improve cash flow per share and provide an exit opportunity to shareholders who may wish to liquidate their holdings at current market valuations.

The proposal is subject to approval by shareholders through a special resolution at the company’s upcoming annual general meeting (AGM), scheduled to be held on April 28, 2026, at the Karachi School of Business and Leadership.

The company’s share transfer books will remain closed from April 21 to April 28, while the proposed buy-back period is expected to run from May 7 to October 25, 2026, subject to regulatory and shareholder approvals. Shareholders seeking to exercise voting rights at the AGM have been advised to ensure that share transfers are lodged with the company’s registrar, FAMCO Associates (Pvt.) Limited, by April 20.

Engro Holdings, formerly known as Dawood Hercules Corporation Limited, said the disclosure was made in line with requirements under the Securities Act, 2015.

Copyright Business Recorder, 2026