Ghandhara Nissan to issue rights share

Ghandhara Nissan in a bid to revive existing assembly facility for the manufacturing of Datsun passenger cars requires funds worth Rs. 5.6 billion of which it has agreed to raise Rs. 1.2 billion through issuance of right shares.

Therefore, the company has proposed to issue 26.67 percent right shares of PKR10/- each at a price of PKR 100/- per share (inclusive of a premium of PKR 90/- per share).

Ghandhara Nissan Limited (GHNL) has recently been recently awarded “Category – B Brownfield Investment Status” by the Ministry of Industries and Production under the Automotive Development Policy 2016 – 21.

The company seeks to contribute towards the revival of car assembly plant as well as capacity enhancement of the plant.

The company estimates that since “Right issue of the Company is being made at a price which is far less than the current share price in the market and hence there is no major investment risk associated with the right issue. Normal risks associated with the business will remain, however, the Company is well placed in the market with proven track record which will help to mitigate such risk factors.”