Agritech Limited (PSX: AGL) converted its preference shares into ordinary shares at the request of Bank Alfalah Limited (PSX: BAFL), according to a company filing on Tuesday.
This conversion comes after a period of strong performance for Agritech’s stock, which surged roughly 60% since March 15th, 2024. Analyst Waqas Ghani of JS Global attributes this rise to a more level playing field in gas prices across the fertilizer industry, benefiting Agritech.
Previously, in 2012, Agritech issued 159 million preference shares to select investors under a Share Subscription Agreement. Bank Alfalah, holding 10.8 million of these shares, requested their conversion to ordinary shares in February 2024, a request Agritech has now fulfilled.
The conversion news triggered a decline in Agritech’s stock price, which hit the lower lock limit. As of the latest filing, the share price sits at Rs. 26.21, a decrease of 7.48% or Rs. 2.12, with a trading volume of 1.6 million shares on Tuesday.