The board of directors of NetSol Technologies Inc. has approved a $5 million stock repurchase to take place over the next 12 months, send the company’s share price up by double digits.

The Calabasas software developer for the vehicle and equipment leasing markets said it would buy back shares in two six-month phases. The first phase started May 30 and is for buying back $2.5 million in shares through Nov. 30.

Management will have the option to approve a second phase, for an additional $2.5 million in shares, after the first expires.

Chief Executive Najeeb Ghauri said that NetSol management was always looking for the best ways to provide value to its shareholders.

“As we’ve demonstrated through the successful execution of previous share buyback programs, we have the resources to act and the operational capacity required to take advantage of the current market conditions, which do not reflect the intrinsic value of our business,” Ghauri said in a statement.

“We remain increasingly confident in NetSol’s long-term growth opportunities and will continue to drive returns for shareholders through our existing operations as well as in the capital markets,” he added.

NetSol announced the buy back on Thursday. On Friday shares (NTWK) closed up 60 cents, or 11.4 percent, to $5.88 on the Nasdaq.