Lahore: In a significant corporate development, the shareholders of Nishat Power Limited have approved two substantial investment resolutions in their recent Extraordinary General Meeting held on August 13, 2025. The meeting took place at The Nishat Hotel, Emporium Mall, Lahore, reflecting the company's strategic direction towards diversifying its investment portfolio.
The primary resolution involved obtaining approval for a long-term equity investment amounting to PKR 2.00 billion in NexGen Auto (Private) Limited, an associated company of Nishat Power. This investment will be executed through the acquisition or subscription of 200 million ordinary shares of NexGen Auto at a face value of Rs. 10 each. The resolution permits this investment to be made over a two-year period, providing the company's executives with the authority to finalize agreements and fulfill legal requirements as necessary.
In addition to the equity investment, shareholders also sanctioned a working capital loan of up to PKR 500.00 million to NexGen Auto. The loan will be extended for one year, with an interest rate pegged to the 3 Months Karachi Inter Bank Offered Rate (KIBOR) plus 100 basis points. The loan terms ensure that the interest rate will not fall below Nishat Power's average borrowing cost or the prevailing KIBOR rate, whichever is higher. The company's executives are authorized to execute the loan agreement and related documentation.
According to information available from the Pakistan Stock Exchange (PSX), these resolutions align with Nishat Power Limited's strategic objectives under the regulatory framework of the Companies Act, 2017, and the Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017. The company's leadership has been empowered to make divestment decisions and manage the right shares entitlement as deemed necessary.
These financial maneuvers indicate Nishat Power Limited's commitment to expanding its investment footprint in the auto sector, specifically with NexGen Auto, an endeavor that may hold significant implications for the company's future financial performance and market position in the designated market category.