Karachi: Ghani Chemical Industries Limited (GCIL) has announced a substantial rights share offer, aiming to raise PKR 1.16 billion through the issuance of 116,374,900 Class B Tracking Shares at PKR 10.00 per share. The company's detailed financial and operational plans, released on November 4, 2026, are focused on bolstering its equity investment in the ambitious Project Silo.
The entire proceeds from this rights issue are designated for equity investment in Project Silo, which is currently in the developmental phase. According to the report, all progress will be updated quarterly in line with Pakistan Stock Exchange (PSX) regulations. The total project cost is pegged at PKR 6.02 billion, with funding sourced from the rights issue, GCIL's internal funds amounting to PKR 850 million, and project debt of PKR 4.00 billion.
GCIL's financial strategy is bolstered by a solid funding structure. While the right issue contributes 19.34% to the project cost, GCIL's internal funds and project debt cover the remaining 14.12% and 66.54%, respectively. G3 Oil & Gas Conversion LLP, a separate entity, is tasked with arranging the necessary debt financing, with GCIL providing corporate guarantees.
Progress updates as of October 27, 2026, indicate that the Sono Lashari project is expected to achieve commercial operation by January-February 2027, with equipment arrivals anticipated in December 2026. The Maiwand project is targeting a September-October 2027 start, contingent on the timely opening of letters of credit. The Jandran project, however, has its timelines yet to be confirmed.
The offered shares, approved at GCIL's Extraordinary General Meeting on October 10, 2026, signify a notable expansion of the company's capital structure. The inclusion of 200 million authorized Class B Tracking Shares raises the total authorized capital to PKR 8 billion.
Financially, the right issue is projected to enhance GCIL's total assets from PKR 20.04 billion to PKR 21.20 billion, reflecting a positive impact on net assets and total equity. The company's liabilities-to-equity ratio is anticipated to improve from 0.61 to 0.56, indicating a stronger financial position post-issue.
The issue's expenses total PKR 16.29 million, covering bankers' commissions, underwriting fees, and other costs. The Class B Tracking Shares' introduction marks a strategic move to align with GCIL's long-term growth objectives within the designated market category.
According to information available from the Pakistan Stock Exchange (PSX), the share capital structure and financial metrics are poised to evolve significantly following the completion of the rights issue, underscoring GCIL's commitment to strategic investment and expansion in the oil and gas sector.