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PACRA Maintains Entity Ratings of Ghani Global Holdings Limited

Rating Type Entity
(22-Nov-22 )
(22-Nov-21 )
Action Maintain Initial
Long Term A- A-
Short Term A2 A2
Outlook Positive Positive
Rating Watch - -

The ratings reflect Ghani Global Holding Limited's ('Ghani Global' or 'the Company') emerging presence as a Holding Company for the Ghani Global Group ('The Group'). The prominent investments in the Company's portfolio include investments in the glass segment through Ghani Global Glass Limited (Ghani Global Glass) and in the chemicals and industrial gases segment through Ghani Chemical Industries Limited (Ghani Chemicals). The Company has also made an investment in the renewable energy segment through Kilowatt Labs Technologies Limited (Kilowatt Labs). However, the business is in its initial stages. Moreover, the Company remains able to materialize the envisaged strategies. In Nov-22, Ghani Chemicals acquired listing status after merging with G3 Technologies, a company acquired in Aug-21 and formerly known as Service Fabrics Limited. Ghani Chemicals has capitalized on growth through capacity expansion and tapping into export avenues. Global Global Glass follows import substitution business model to cope with the enhanced pharma needs and supplies. The subsidiary has announced an expansion to enhance capacity and value addition to tap the increasing demand in the local market and for diversification as well as to tap into the export market. These projects have stabilized, however, are yet to become dividend-yielding investments. Moreover, institutionalization of investment policies would be beneficial. The Company has a strong financial profile, represented by 100% equity base. The management intends to rely primarily on equity-based funding sources as against debts for expansionary measures. The Company has increased its equity base through a right issue.
The ratings are dependent on the management's ability to execute its envisaged strategy of growth and expansion. Timely materialization of these initiatives into profitable ventures is critical to the ratings. Strong performance of subsidiaries, initiation of dividend flow, and effective managemgent of financial profile and liquidity remains important.~~

About the Entity
Ghani Global Holdings Limited (‘Ghani Global’ or ‘the Company') is a Public Listed Company. It was incorporated (formerly “Ghani Gases Limited) in Nov-07. The Company’s name was changed from Ghani Gases Limited to Ghani Global Holdings Limited in Aug-19. The transition marked the separation of manufacturing facilities from the Company and the basic principle became to manage investments in subsidiaries and associated companies.
The Company’s majority (~43%) ownership lies with the sponsoring family. Mr. Masroor Ahmad Khan holds ~15% stake, Mr. Attique Ahmad Khan holds ~14% stake and Mr. Hafiz Farooq Ahmad holds ~14% stake in the Company. The remaining shareholding lies with the spouses of Directors (~8%), and General Public (~ 49%). Mr. Atique Ahmad Khan heads the Company as the CEO and is assisted by a team of experienced professionals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.