Shield Corporation Limited (PSX: SCL) has received formal acceptance from its majority shareholders and sponsors under Pakistan Stock Exchange (PSX) Regulation to proceed with the purchase of its ordinary shares. The buyback will be executed at a price of Rs750 per share , as proposed by the PSX, marking a significant step in the company’s share repurchase and voluntary delisting initiative.
Read More: Pakistan State Oil Appoints Jawwad Ahmed Cheema as New Chief Executive Officer
The acceptance from majority shareholders and sponsors clears a key regulatory hurdle for the buyback, allowing the company to move forward with the repurchase of shares from existing shareholders.
Voluntary Delisting Context
Earlier, Shield Corporation had applied for voluntary delisting from the Pakistan Stock Exchange , citing persistently low trading activity in its shares with an average daily volume of around 923 shares over the past year. The low liquidity in the company’s stock made it difficult for shareholders to exit their positions efficiently, prompting the delisting application.
| Aspect | Detail |
|---|---|
| Buyback Price | Rs750 per share |
| Regulatory Approval | PSX Regulation acceptance |
| Majority Shareholder Acceptance | Obtained |
| Voluntary Delisting Status | Applied (pending completion) |
| Average Daily Volume (Past Year) | ~923 shares |
Share Buyback Mechanism
The buyback at Rs750 per share provides an exit opportunity for existing shareholders who wish to liquidate their holdings as part of the delisting process. The price represents the value at which the company’s majority shareholders and sponsors are willing to acquire shares from other shareholders.
About Shield Corporation Limited
Shield Corporation Limited (PSX: SCL) is a publicly listed company that had applied for voluntary delisting from the Pakistan Stock Exchange due to persistently low trading activity in its shares.
About Voluntary Delisting
Voluntary delisting occurs when a publicly listed company chooses to remove its shares from a stock exchange, typically due to low trading volume, high compliance costs, or strategic reasons such as going private. Under PSX regulations, delisting requires majority shareholder approval and a fair exit price for minority shareholders.
