The Pakistan Credit Rating Agency Limited
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Faiqa Qamar

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PACRA Assigns Initial Entity Ratings to Ghani Global Holdings Limited

Rating Type Entity
Action Initial
Long Term A-
Short Term A2
Outlook 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 Company has made investments in glass and industrial and medical gases segments through its subsidiaries Ghani Global Glass Limited (Global Glass) and Ghani Chemical Industries Limited (Ghani Chemicals), respectively. Lately, the Company has signed JV agreement with Kilowatt Labs Inc. that holds prominent position in renewable solutions in the global market, for technological transfer and formation of Kilowatt Labs Technologies Limited. However, the business is at its initial stages. All projects are predominantly funded through equity. Moreover, the Company was able to materialize the envisaged strategies despite a slowdown in the economy due to Covid-19. Ghani Chemicals has capitalized growth as a result of its third round of expansion of 110TPD and rationalized price for medical and industrial gases. Moreover, the subsidiary plans to go for an IPO within FY22. 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 of market and for diversification. Moreover, Global Glass has issued right shares during FY21. 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. Lately, the Company has issued right shares to increase its equity base.
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 management 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 ownership lies with the sponsoring family. Brothers, Mr. Masroor Ahmad Khan (15%), Mr. Attique Ahmad Khan (14%), and Mr. Hafiz Farooq Ahmad (14%) own majority (43%) of the total shares. The remaining shareholding lies with the spouses of Directors (8%), and General Public (49%). Mr. Atique Ahmad Khan, is the CEO and has been associated with the Company at the current position since inception. He 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.