Atif Malik,


Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award


Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Theoretically speaking, share price of a company reflects present value of future returns from a company which the shareholders expect. Historically, Karachi stock exchange has witnessed higher share price of PPL over OGDCL but from the last few years this trend has reversed.

There are various reasons behind this shift. One of the most important aspect is that PPL has been continuously increasing its share capital through the issuance of Bonus shares. Bonus shares do not result in any cash flows to the company but they dilute per share earnings of the company. Share capital has increased from 1.3 billion shares in 2011-12 to 1.9 billion shares in 2014-15. (Almost an increase of 46%). On the other hands, OGDC has kept its share capital constant.



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