⚡ Flash Summary

Ghani Chemical Industries Limited (GCIL) is seeking shareholder approval to issue cross corporate guarantees up to Rs. 500 million for its holding company, Ghani Global Holdings Limited (GGL). This guarantee will enable GGL to secure financing facilities from banks. The proposed agenda item will be presented at the upcoming Annual General Meeting (AGM) on October 28, 2025. The decision to issue the guarantee is at the request of Ghani Global Holdings Limited, a substantial shareholder, and requires special resolutions under Section 199 of the Companies Act, 2017.

📌 Key Takeaways

• 📌 GCIL is seeking shareholder approval for issuing cross corporate guarantees of up to Rs. 500 million for Ghani Global Holdings Limited (GGL).
• 🏢 GGL is the holding company of GCIL.
• 📅 The approval will be sought at the AGM scheduled for October 28, 2025.
• 📜 The issuance is under Section 199 of the Companies Act, 2017, requiring special resolutions.
• 🏦 The guarantee is to enable GGL to obtain financing facilities from banks.
• 🤝 The request for the guarantee came from GGL as a substantial shareholder.
• 📑 The earnings per share for GCIL were reported as Rs. 0.426 in 2025, Rs. 0.069 in 2024 and Rs. 0.046 in 2023.
• 💹 The breakup value per share, based on the latest audited financial statements, is Rs. 11.18.
• 💰 GCIL’s sales (net) for the period stood at Rs. 95.652 million.
• Gross profit was reported at Rs. 1.217 million.
• Administrative expenses amounted to Rs. 6.396 million.
• 💸 Other income was Rs. 201.265 million.
• 🏦 Finance costs were Rs. 12.001 million.
• ✅ Profit after taxation was Rs. 151.010 million.
• 🏦 Commission on guarantee @ 0.1% per quarter.

🎯 Investment Thesis

HOLD. The announcement is an addendum for approving cross-corporate guarantees and doesn’t fundamentally change the investment outlook for GCIL. While the financial metrics show profitability, the guarantee introduces a contingent liability. Further information on GGL’s financials and the utilization of funds is needed to assess the true impact on GCIL. Price target is maintained pending further information.