Islamabad: Lucky Core Industries (LCI) has announced that its Board of Directors (BoD) has approved a proposal to sub-divide the company’s ordinary shares, aimed at enhancing market participation and investor accessibility.
The move is contingent upon approval from the company’s shareholders.
In a notice issued on Tuesday, the company stated that the sub-division involves reducing the face value of its ordinary shares from Rs10 to Rs2 each.
This restructuring will not alter the overall equity value held by investors but will increase the number of outstanding shares significantly.
“To improve investor accessibility and participation, the BoD has approved a sub-division of the face value of the company’s shares, subject to member approval,” the statement read.
Under the proposed change, each existing share with a face value of Rs10 will be split into five shares with a face value of Rs2.
As a result, the company’s current subscribed and paid-up capital—comprising 92,359,050 ordinary shares of Rs10—will be restructured into 461,795,250 ordinary shares of Rs2 each.
This effectively increases the number of shares fivefold, allowing smaller investors easier entry into the stock.
The company confirmed that shareholders will receive five Rs2 shares for every one Rs10 share they hold.
An Extraordinary General Meeting (EGM) will be convened in the near future to seek shareholder approval for this corporate action.
Stock splits such as this one are commonly undertaken by companies to improve share liquidity, increase retail investor participation, and make shares more affordable without affecting the overall market capitalization.
Despite the total value of an investor’s holdings remaining the same, the increased number of shares can potentially attract a broader investor base.
Read More: Lucky Cement Completes Wind Power Plant in Karachi
The market responded positively to the announcement, with LCI’s stock price rising by Rs69.98 or 4.79%, bringing it to Rs1,530 per share at the time of reporting.
LCI, originally established in 1953 as Khewra Soda Ash Company, has undergone several transformations over the decades.
The company was renamed ICI Pakistan Manufacturers Limited in 1966 following the acquisition of Fuller Paints Limited. Imperial Chemicals (Private) Limited was later merged into the company.
In 2012, Lucky Holdings Limited acquired a majority stake from AkzoNobel, becoming LCI’s parent company. In December 2022, the company rebranded itself as Lucky Core Industries Limited.
Over the years, LCI has expanded through several significant acquisitions, including Cirin Pharmaceuticals Limited, Wyeth Pakistan Limited, and Pfizer Pakistan Limited.
Also Read: Lucky Core Acquires Pfizer Plant in Karachi
Today, it operates across five diverse segments: soda ash, polyester, chemicals and agricultural sciences, pharmaceuticals, and animal health.
