Engro Powergen Qadirpur Limited (EPQL) is up for
listing at Karachi Stock Exchange (KSE) and provisional trading of the scrip
will start from 17Sep'14 and will end on 24Oct'14. The company has already
divested 12.5% (40.475mn shares) of its paid up capital through private
placement at the rate of Rs30.02/share and its present offer is to divest
further 12.5% of its paid up capital to general public at the same price i.e.
Rs30.02/share. The date of public subscription will start from September 22nd
to 24th, 2014 (both days inclusive). In today's Value Seeker we discuss
different aspects of the transaction along with our recommendation for the
same.
Strong financials
to support overwhelming response
The profitability of Engro Powergen is continuously
on rising trajectory since its COD back in 2010 except for CY13 where the
generation and resultantly the profitability halted due to plant shutdown in
2HCY13 on technical issues. Those plant issues are now completely resolved and
the plant is fully operational therefore financial performance has
significantly improved in 1HCY14 as evident from the results in the table
below. Furthermore, being a power generation company it holds a strong
payout history and we expect same healthy dividends going forward.
