Nishat Power to invest Rs2.5bn in EV venture NexGen Auto
NPL disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Monday. The listed company has called for an Extraordinary General Meeting (EGM) in this regard, which is scheduled to be held on August 13, 2025.
The proposed investment, to be approved through special resolutions by NPL shareholders, includes Rs2 billion in equity investment by way of acquisition/subscription of 200 million ordinary shares of Rs10 each of NexGen Auto (Private) Limited, and an additional Rs500 million as a one-year working capital loan.
HUBCO plans to install EV charging network across Pakistan
As per the document, the loan component will carry a return of 3-month KIBOR plus 100 basis points, or the company's average borrowing cost—whichever is higher—payable quarterly.
NexGen Auto, incorporated in August 2024, has made significant strides toward its market debut. The company has formalised its partnership with Cherry Automobile Co. Ltd of China, for the importation, local production and nationwide distribution of its two sub-brands Omoda and Jaecoo, specialised in new energy vehicles.
'NexGen sales and marketing teams are actively engaged in pre-launch campaigns, culminating in a much-anticipated mega launch event slated for the first week of August 2025,' NPL informed.
According to documents made available to the stock exchange, NexGen's project for CKD assembly has already commenced and is expected to be completed by March 31, 2026, with commercial operations set to begin within calendar year 2025.
The total project cost is estimated at Rs14.7 billion, to be funded through a mix of debt and equity.
NPL expects that the investment will not only yield dividend income and capital gains in the long run but also diversify its portfolio and strengthen its commitment to sustainability-focused ventures.
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