Nishat Power to Invest in Electric Vehicle Company

Nishat Power Limited (NPL) has revealed its intention to invest up to Rs2.5 billion in NexGen Auto (Private) Limited, an affiliated firm focused on the electric vehicle (EV) sector.

NPL communicated this development in its notification to the Pakistan Stock Exchange (PSX) on Monday. The publicly listed company has scheduled an Extraordinary General Meeting (EGM) for August 13, 2025, to discuss the matter.

The proposed investment, subject to approval via special resolutions by NPL’s shareholders, comprises Rs2 billion in equity through the acquisition/subscription of 200 million ordinary shares of Rs10 each in NexGen Auto (Private) Limited. Additionally, a one-year working capital loan of Rs500 million is included.

Loan Details

According to the provided documentation, the loan component will accrue interest at a rate of 3-month KIBOR plus 100 basis points, or the company’s average cost of borrowing—whichever is higher—payable on a quarterly basis.

NexGen Auto’s Progress

NexGen Auto, established in August 2024, has made substantial progress toward its market launch. The company has officially partnered with Cherry Automobile Co. Ltd of China for the import, local manufacturing, and nationwide distribution of their Omoda and Jaecoo sub-brands, which specialize in new energy vehicles.

“NexGen’s sales and marketing teams are actively involved in pre-launch activities, building up to a highly anticipated launch event scheduled for the first week of August 2025,” NPL stated.

According to documents submitted to the stock exchange, NexGen’s project for CKD assembly has commenced and is projected to conclude by March 31, 2026, with commercial operations planned to commence within the 2025 calendar year.

The overall project cost is estimated at Rs14.7 billion, financed through a blend of debt and equity.

NPL anticipates that this investment will generate dividend income and capital appreciation over the long term, as well as diversify its investment portfolio and reinforce its dedication to sustainability-oriented ventures.