PACRA Maintains Entity Ratings of Engro Holdings Limited (Formerly Dawood Hercules Corporation Limited)

The ratings reflect Engro Holdings Limited's formerly known as Dawood Hercules Corporation Limited, (”Engro Holdings” or “the Company”) robust risk profile and strong liquidity position. During Dec24, Dawood Hercules Corporation Limited, was renamed as Engro Holdings Limited. The name change was driven by the Group’s strategic objective to rationalize its organizational framework through the elimination of redundant management layers and to promote stronger strategic alignment across its diversified business portfolio. In Jan25, Engro Holdings Limited, DH Partners Limited and Engro Corporation Limited successfully completed a corporate restructuring, pursuant to which Engro Corporation Limited became a wholly owned subsidiary of Engro Holdings Limited. DH Partners Limited (DHPL), a carved out public limited company, established for investment management, was listed on the Pakistan Stock Exchange during CY25. Prior to the restructuring, the Dawood Group, represented by Dawood Family and Associates, held approximately (~32.45%) stake, through corporate entities (around ~30%) and individual holdings (around ~2.45%) in Engro Holdings. Foreign companies own (~48%) approximately while the remaining stake is shared between financial institutions, the general public and other stakeholders. To facilitate the proposed restructuring, Engro Holdings Limited increased its authorized share capital to 1.25bln ordinary shares as of Dec24. The restructuring involved a share swap arrangement, whereby shareholders of Engro Corporation (excluding the existing shareholding held by Engro Holdings) were exchanged for shares of Engro Holdings Limited at a swap ratio of 2.24 Engro Holdings shares for each Engro Corp share. As a result, Engro Holdings issued ~722.9mln new ordinary shares, making Engro Corporation a wholly owned subsidiary of Engro Holdings Limited. Currently, the Dawood Group hold approximately (~22.66%) stake, through corporate entities (around ~15.20%) and individual holdings (around ~7.46%) in Engro Holdings.
Engro Holdings Limited, primarily through Engro Corporation Limited, maintains a diversified investment portfolio supported by a robust oversight framework for evaluating and executing new investments. Its portfolio reflects the strategic direction of its subsidiaries, underpinned by strong governance. The Company mitigates risk through blue-chip investments, upholds strong liquidity with a high-quality short-term portfolio, and pursues strategic opportunities across diversified sectors: technology, cement, banking, energy, and pharmaceuticals, enhancing transparency and resilience. The Holding Company’s short-term investment portfolio shows a positive growth of ~27% as of CY24. Engro Holdings derives its revenue mainly from dividend income through short-term portfolio and wholly owned subsidiary. The company recorded strong dividend inflows from Engro Corporation Limited, reported at 83.6%, contributed significantly to the profitability and cash flow position.
The ratings are dependent on the management's ability to execute its envisaged strategy of growth and expansion amidst prevailing economic environment. Sustainability in the performance of subsidiaries, stable dividends and effective management of financial profile is important.

About the Entity
Engro Holdings Limited, formerly Dawood Hercules Corporation Limited, established on 17 April 1968, is a public listed company. Its core focus lies in investment management. Board of Directors is led by Mr. Hussain Dawood, the esteemed patriarch of the Dawood family. Abdul Samad Dawood was appointed as the Chief Executive Officer (CEO) of Engro Holdings Limited in Jan25.