Karachi: Lucky Core Industries Limited (LCI) has announced a significant change in the face value of its shares, which will take effect following a book closure on July 19, 2025. The change, detailed in a letter dated June 27, 2025, will see the face value of LCI shares adjusted from PKR 10 to PKR 2, according to information available from the Pakistan Stock Exchange (PSX). This move is expected to impact trading mechanics as the company implements a stock split.
The announcement includes a modified settlement cycle for trading on July 17 and July 18, 2025, which will operate on a T+0 basis, signifying same-day settlement. This adjustment in the trading days preceding the book closure is due to the stock split. The normal trading cycle, T+2, will resume on July 21, 2025, which is the first working day after the book closure. The opening price on this day will be one fifth of the closing price recorded on the last trading day before the book closure. As a result of the split, the total number of shares will rise from 92.36 million to 461.80 million. However, the paid-up capital of LCI will remain unchanged.
Guidelines have been set to facilitate clarity and consistency during this stock split, ensuring that all stakeholders are well-informed of the processes and implications. These guidelines provide a framework for both the Ready and Futures Markets, focusing on trading and settlement mechanisms.
In the Ready Market, the change in face value will be effective on BC-2 and BC-1 trading days, adhering to a T+0 basis on a cum-benefit/entitlement basis. The T+2 settlement schedule will resume on BC+1 with adjusted prices and outstanding shares. Notably, netting between T+2 and T+0 trades on the same settlement date is not permitted, and some facilities, such as IDS/IDSI/IDSC/NCS, will be unavailable under the T+0 cycle. However, square-up market provisions will apply for delivery defaults on BC-2.
In the Futures Market, existing DFC contracts will be pre-matured as per PSX's notified schedule. These contracts will undergo a split a week before the book closure, with a two-day overlap between contracts on adjusted and cum price.
Collateral valuation will maintain the market price (cum Price) for securities pledged against collateral until the book closure date, with adjustments to pledging facilities post-closure.
LCI's book closure date is strategically set for a Saturday to minimize trading disruptions, adhering to a single-day schedule. This change in face value and the accompanying stock split reflect LCI's strategic maneuvers to enhance liquidity and shareholder value within the designated market category.