⚡ Flash Summary

Ghani Chemical Industries Limited (GCIL) plans to seek shareholder approval for issuing cross-corporate guarantees of up to Rs. 500 million for its holding company, Ghani Global Holdings Limited (GGL), to secure financing facilities. This decision was made at the request of GGL, a substantial shareholder, under Section 140 of the Companies Act, 2017. The approval will be sought through special resolutions during the upcoming Annual General Meeting (AGM) on October 28, 2025, following Section 199 of the Companies Act, 2017. The move aims to meet the security requirements of the bank(s) for GGL’s financing.

📌 Key Takeaways

• 🗓️ AGM Date: October 28, 2025, to approve the agenda item.
• 🤝 Cross-Corporate Guarantees: GCIL to issue guarantees up to Rs. 500 million for GGL.
• 🏢 Beneficiary: Ghani Global Holdings Limited (GGL), the holding company of GCIL.
• 🏦 Purpose: Securing financing facilities for GGL from banks.
• 📜 Legal Basis: Approval sought under Section 199 of the Companies Act, 2017.
• ℹ️ Disclosure Requirement: Complies with SRO 1240(1)/2017 dated December 6, 2017.
• 📊 EPS (2025): Earnings per share reported as Rs. 0.426.
• 📉 EPS (2024): Earnings per share reported as Rs. 0.069.
• 📉 EPS (2023): Earnings per share reported as Rs. 0.046.
• 💰 Sales (Net): Sales reported at Rs. 95.652 million.
• ✅ Gross Profit: Gross profit amounts to Rs. 1.217 million.
• 💼 Total Assets: Total assets valued at Rs. 4,021.298 million.
• 🏦 Paid-up Share Capital: Rs. 3,541.197 million.
• 💸 Revenue Reserve: Rs. 421.163 million.
• 🔗 Commission Rate: Commission on guarantee @ 0.1% per quarter.

🎯 Investment Thesis

Given the limited direct impact on GCIL’s operations and the guarantee being for the holding company, a HOLD recommendation is appropriate. Monitor GGL’s financial performance to assess any potential impact on GCIL. The price target remains unchanged pending further developments.