Karachi: DH Partners Limited (DHPL) has taken significant strides towards its upcoming listing on the Pakistan Stock Exchange (PSX), scheduled for March 2025. The company recently submitted its latest unaudited financial accounts, covering the period from its incorporation on May 8, 2024, to November 30, 2024, as part of the compliance requirements for listing on the PSX.
The financial restructuring of DHPL is part of a larger Scheme of Arrangement approved by the shareholders of Engro Holdings Limited (EHL), DHPL, and Engro Corporation Limited (ECL) on June 26, 2024. This scheme was later sanctioned by the Islamabad High Court on July 18, 2024, and will take effect from January 1, 2025. The arrangement involves the demerger of Engro Holdings Limited into two legal entities, redistributing its assets, liabilities, and obligations to DHPL, which, in turn, has issued shares to EHL's existing shareholders in the same proportion as their current holdings.
According to the scheme, ECL has become a wholly owned subsidiary of EHL. Shares held by other shareholders of ECL have been vested into EHL, allowing them to maintain their proportionate shareholding in ECL indirectly. This strategic move is expected to streamline operations and enhance shareholder value as DHPL progresses towards its PSX listing.
The unaudited financial statements reveal that as of November 30, 2024, DHPL holds a bank balance of PKR 0.997 million. The company's total liabilities amount to PKR 2.47 million, including a payable of PKR 2.13 million to Dawood Hercules Corporation Limited and an accrued liability of PKR 0.334 million. The authorized share capital is PKR 4.85 billion, with issued, subscribed, and paid-up share capital standing at PKR 1.00 million, and reserves showing a deficit of PKR 2.47 million.
The company has outlined its financial risk management strategies, focusing on credit and liquidity risks, with measures in place to monitor credit exposures and ensure sufficient assets to meet liabilities. The management believes the assets to be vested into DHPL as per the Scheme will adequately settle the net liabilities.
DHPL's journey to listing on the PSX marks a critical phase in its transformation, aiming to enhance its capital structure and maintain a strong credit rating. The overarching goal is to ensure ample finance availability for existing and prospective investment projects, maximizing shareholder value, and reducing the cost of capital.
According to information available from the Pakistan Stock Exchange (PSX), DHPL is set to become a key player in the designated market category, with its shares expected to attract significant investor interest following the strategic demerger and restructuring efforts.