Islamabad, Oct 15: Kohat Cement Approves Rs. 600 Million Short-Term Financing to Boost Associated Company’s Growth. The extension of investment in Ultra Kraft (Private) Limited (UKPL), an affiliated company, through short-term running finance up to Rs. 600 million has been approved by the Board of Directors of Kohat Cement Company Limited (PSX: KOHC).
For a period of one year starting on October 29, 2024, this financing will be used to meet its working capital needs at a markup rate of 1.50 percent above three months’ KIBOR or at the company’s average borrowing cost, whichever is higher.
According to KOHC, UKPL must pay this within fifteen days of the end of each quarter and in accordance with other terms and conditions that are communicated to members. Failure to pay the markup within the allotted time will result in an additional markup or penalty equal to five percent of the outstanding amount annually.
Cement manufacture and sales are the company’s activities. KOHC’s parent business is ANS Capital (Private) Limited. With 50,227 shares on Tuesday, KOHC’s scrip was up 0.27 percent, or Rs. 0.84, at the time of filing on the stock exchange.
The Kohat Cement Company Ltd. has finally sanctioned Rs. 600 million in short-term financing for one of its associate companies. These decisions are in line with the growth and operational needs of the affiliated business of Kohat Cement.
The financing will be used to fund working capital of the associated company and thus eliminate its short-term financial constraints as well as optimize different business processes, given the demand for immediate capital.
