Lucky Core Industries Proposes Stock Sub-Division

Lucky Core Industries (LCI) has announced to the stock exchange that its Board of Directors (BoD) has suggested a sub-division of equity shares, pending shareholder authorization.

A formal notice released on Tuesday stated, “To enhance investor accessibility and broaden participation, the BoD of Lucky Core Industries Limited has sanctioned a sub-division of the company’s share face value, contingent upon member approval.”

According to the proposal, the face value of each ordinary share will decrease from Rs10 to Rs2 per share.

“Consequently, the company’s subscribed and paid-up capital, which currently consists of 92,359,050 ordinary shares valued at Rs10 each, will be reorganized into 461,795,250 ordinary shares valued at Rs2 each.”

Following a similar strategy, Thatta Cement is also considering a 5-for-1 stock split to attract a wider range of investors.

The company clarified that after the stock split, shareholders will be entitled to receive five shares of Rs2 each for every existing share of Rs10.

“An Extraordinary General Meeting will be scheduled in the near future to secure member approval for the aforementioned items,” the company added.

Understanding Stock Splits

Stock splits are corporate actions where a company increases its number of outstanding shares by dividing each existing share into multiple new shares. This action does not alter the overall value of an investor’s holdings.

Upon the announcement, LCI’s stock value increased by Rs69.98, marking a 4.79% rise, trading at approximately Rs1,530 per share at the time of reporting.

LCI’s Historical Overview

LCI was established in Pakistan in 1953 as a public limited company under the name Khewra Soda Ash Company.

In 1966, following the acquisition of Fuller Paints Limited a year prior, the company was renamed ICI Pakistan Manufacturers Limited. Later, Imperial Chemicals (Private) Limited was integrated into the company.

In 2012, Lucky Holdings Limited acquired a majority stake in the company from AkzoNobel, thus becoming the holding company of LCI.

The name was officially changed from ICI Pakistan Limited to Lucky Core Industries Limited in December 2022. Subsequently, the company made significant acquisitions, including Cirin Pharmaceuticals Limited, Wyeth Pakistan Limited, and Pfizer Pakistan Limited.

The company’s operations span five distinct sectors: soda ash, polyester, chemicals & agri sciences, pharmaceuticals, and animal health.