Muhammad Zain Ayaz
PACRA Maintains Entity Ratings of Ghani Global Holdings Limited
The long-term rating of ‘A-’ denotes high credit quality. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A-2’ denotes satisfactory capacity for timely payment; liquidity factors are adequate. Outlook on the assigned ratings is ‘Positive’.
The ratings portray 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's investment portfolio includes investments in the glass segment through Ghani Global Glass Limited (Ghani Global Glass), chemical and industrial gases segment through Ghani Chemical Industries Limited (Ghani Chemicals). The organization retains the capability to operationalize the envisioned strategies. In November 22, Ghani Chemicals achieved listing status subsequent to its merger with G3 Technologies. G3 Technologies, formerly recognized as Service Fabrics Limited, was acquired in August 2021. Ghani Chemicals has strategically pursued expansion initiatives to foster growth, with a particular focus on augmenting production capacity and exploring opportunities within the export market. Concurrently, Ghani Global Glass adheres to an import substitution business model, aligning its operations to address the heightened demands and supply requirements within the pharmaceutical sector. The subsidiary has augmented its production capacity, a strategic initiative designed to contribute significant value by addressing the escalating demand in the local market. This expansion not only facilitates diversification but also positions the subsidiary to actively pursue opportunities within the export market. While these projects have achieved stabilization, they have not yet matured into dividend-yielding investments. The institutionalization of investment policies would be constructive. The company maintains a robust financial profile, characterized by a 100% equity base. The management's strategic approach involves a preference for equity-based funding sources over debts for expansionary endeavors. This commitment to equity financing has been reinforced by the company's augmentation of its equity base through right issue.
The credit ratings are contingent upon the management's proficiency in implementing its envisioned strategy for growth and expansion. The punctual realization of these initiatives into financially lucrative endeavors is imperative for maintaining the ratings. Noteworthy factors include the robust performance of subsidiaries, and the efficient management of the financial profile and liquidity position.
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 signified the segregation of manufacturing facilities from the company, with the fundamental directive evolving to encompass the strategic management of investments in subsidiaries and affiliated entities. 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. Masroor Ahmad Khan heads the Company as the CEO and is assisted by a team of experienced professionals.