⚡ Flash Summary

Lalpir Power Limited (LPL) announced the cancellation of 100 million ordinary shares, each with a par value of Rs. 10/-, as a result of a share buyback program. This significant reduction in outstanding shares, confirmed by the Central Depository Company of Pakistan Limited (CDC), brings the new paid-up capital to 279,838,732 ordinary shares. The buyback is expected to positively impact the company’s per-share metrics, improving shareholder value by consolidating ownership and potentially boosting earnings per share.

📌 Key Takeaways

• 🚀 Lalpir Power Limited (LPL) announced the cancellation of 100,000,000 ordinary shares.
• 💰 Each cancelled share had a par value of Rs. 10/-, implying a total par value reduction of PKR 1,000,000,000.
• 📉 This cancellation is a direct result of a share buyback program conducted by the company.
• ✅ The Central Depository Company (CDC) confirmed the cancellation on December 26, 2025.
• 📊 Prior to the buyback, LPL had 379,838,732 ordinary shares outstanding (279,838,732 + 100,000,000).
• 🆕 The new total paid-up capital now consists of 279,838,732 ordinary shares.
• 📈 The buyback represents a substantial 26.33% reduction in outstanding shares (100M / 379.8M).
• 💸 This action is typically viewed as a capital allocation strategy to return value to shareholders.
• 🌟 Reduction in share count will mechanically increase Earnings Per Share (EPS), all else being equal.
• 💼 It also improves Return on Equity (ROE) and other per-share financial metrics.
• 🛡️ The company demonstrates confidence in its future earnings and believes its shares are undervalued.
• 🗓️ The announcement date by LPL was December 29, 2025, shortly after the CDC confirmation.
• ✨ Enhanced shareholder value through higher ownership stake per share.

🎯 Investment Thesis

Given the substantial reduction of 100 million ordinary shares, representing 26.33% of previously outstanding shares, Lalpir Power Limited’s buyback is a strong positive indicator for shareholder value. This action is a clear signal from management that they believe the company’s shares are undervalued and that returning capital via share reduction is an effective way to enhance per-share metrics. The mechanical increase in Earnings Per Share (EPS), and likely other per-share fundamentals, makes the remaining shares more attractive. We recommend a BUY signal for Lalpir Power Limited. While a specific price target cannot be established without detailed financial results and a comprehensive valuation model, the buyback fundamentally improves the intrinsic value per share. Investors should look for upward revisions in analyst EPS estimates as a result of this announcement. The rationale for a higher price target stems directly from the improved EPS and other per-share metrics, which should lead to a higher valuation multiples being applied to the reduced share count.