Ghani Chemical Wants to Raise Rs. 1.16 Billion From Shareholders

Ghani Chemical Industries Limited has proposed a rights issue of up to Rs. 1.16 billion in order to finance investments in three projects, subject to shareholder approval and regulatory compliance. The company's board has authorized the issuance of up to 116,374,900 Class B tracking shares at a price of Rs. 10 per share, which would generate the required funds.

This rights issue constitutes approximately 20.40 percent of the company's existing paid-up ordinary share capital of 570,451,931 shares. Eligible shareholders will receive one Class B tracking share for every 1,000 ordinary shares they currently hold, pending the final determination of entitlement ratios and other approvals. The proceeds from the rights issue will be utilized to fund the company's equity investment in the Silo Lashari, Jandran, and Maiwand projects.

The estimated total cost of these projects is around Rs. 6.02 billion, with financing comprising project debt of approximately Rs. 4 billion and project equity of around Rs. 2.01 billion. Of the project equity, Rs. 1.16 billion will be sourced from the rights issue, while the remaining Rs. 850 million will be funded internally. The proposed investment aims to support the company's expansion and diversification efforts and grant shareholders exposure to the projects' potential earnings and distributions, provided all necessary agreements, approvals, and legal requirements are met.

The rights issue is contingent upon shareholder approval, amendments to the company's authorized share capital and other relevant documents, regulatory approvals, and the execution of definitive transaction agreements.