ISLAMABAD: Nishat Power Limited (NPL) plans to invest up to Rs2.5 billion in NexGen Auto (Private) Limited, a company focusing on electric vehicles (EVs). The announcement was made in a notice to the Pakistan Stock Exchange (PSX) on Monday.
NPL has called for an Extraordinary General Meeting (EGM) on August 13, 2025, to seek shareholder approval for the investment. The proposed deal includes Rs2 billion in equity to acquire 200 million ordinary shares of NexGen Auto at Rs10 each, along with an additional Rs500 million working capital loan.
The loan will carry an interest rate of 3-month KIBOR plus 100 basis points, or the company’s average borrowing cost, whichever is higher. The repayment will be quarterly.
NexGen Auto, established in August 2024, has partnered with Cherry Automobile Co. Ltd of China to introduce two new energy vehicle sub-brands, Omoda and Jaecoo, in Pakistan. The company is preparing for a major launch event in August 2025. The CKD assembly project for these vehicles has begun and is expected to be completed by March 31, 2026, with commercial operations to start in 2025. The total project cost is estimated at Rs14.7 billion, funded through a combination of debt and equity.
NPL anticipates that the investment will generate long-term returns, enhance its portfolio, and align with its sustainability goals.
