Flash Note: Engro Corporation (ENGRO): Invests US$21.4mn in Siddiqsons Energy Limited
- Engro Corporation (ENGRO) has notified exchange regarding equity investment of US$21.4mn in Siddiqsons Energy Limited, a Special Purpose Vehicle (SPV) to set up 330MW of Thar coal fired power plant in Block II district Tharparkar.
- As per our working total project will cost ~US$500mn with debt-equity ratio of 75%:25%. We estimate Engro’s equity share in SPV would be around 17%.
- The project is likely to commence operations in Jun-2021 and will have minimal impact of around Rs1-1.4 per share to bottomline of the company. Along with this, the core objective of the company is to bring more players on Thar coal platform.
- To note, company was carrying cash amount of ~Rs65bn (~USD 565mn) as of Mar 2018 and it has also applied for “Letter of intent and rights” to develop 350MW of wind and solar power plant in Balochistan. Moreover, management is also considering to invest in logistics, ecommerce and transmission business.
Engro Corporation is an agri based company. Co.'s core business is the manufacturing, purchasing and marketing of chemical fertilizers and seeds. Co. is engaged in the production of Urea fertilizer in Pakistan which is manufactured at Daharki and marketed under brand name Engro. Co. also maintains a seed business and is marketing imported hybrid and open pollinated seeds of maize and sunflower crop under the brand name of Bemisal. Co. has investments in joint ventures engaged in chemical terminal and storage, PVC resin manufacturing and marketing and Automation and Controls businesses.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.