GTECH: 42.32% of Rs2.34bn right subscription remains unutilized

July 15, 2022 (MLN): G3 Technologies Limited (PSX: GTECH) has Rs990.78 million (42.32%) unutilized funds out of Rs2.34 billion of right subscription amount for the quarter ended June 30, 2022 while Rs1.35bn (57.66%) has been utilized for Calcium Carbide Project, investment in GCIL and working capital requirements, the company’s quarterly progress report issued to PSX showed today.

For the Calcium Carbide Project, the company has utilized Rs406.55 million out of the right subscription amount of Rs1bn.

The project shall completely provide import substitution to Pakistan as the plant will help the company to indigenize the production of many by-products, besides enabling the company to tap the export market.

Meanwhile, the company has successfully utilized the right subscription amount of Rs400mn for equity investment in Ghani Chemical Industries Limited (GCIL), the largest manufacturer of medical and industrial gases in Pakistan in order to step forward the implementation of the revival business plan of the company.

On the other hand, the company did not utilize any amount on Supercapacitor Project out of Rs650mn while Rs182.93mn have been utilized for working capital requirements. 

The report further added that as there is a time lag in the commencement of the Supercapacitor Project, so to ensure the effective utilization of funds of the company, Rs360.90mn have been deployed to get a reasonable return on it. 

Hence, shareholders in their extraordinary general meeting held on January 04, 2022, approved extending the loan to Ghani Chemical Industries Ltd (an associated company) for not less than 3 months Kibor +0.85% per annum.

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