Engro Holdings Limited (PSX: ENGROH) has announced plans to divest approximately 18.53% of its shareholding in its subsidiary, Engro Powergen Qadirpur Limited (EPQL), while retaining majority ownership and maintaining management control, according to a material disclosure submitted to the Pakistan Stock Exchange (PSX). The move is part of the company’s ongoing portfolio management strategy and is aimed at optimizing its investment structure while preserving strategic influence over key assets.
The planned transaction will be executed through Engro Holdings’ wholly owned unit, Engro Energy Limited (EEL). Following the partial divestment, Engro Holdings is expected to retain roughly 50.36% equity in EPQL, ensuring continued operational control of the gas-fired power producer. The company, however, has not disclosed the identity of the buyer, the transaction value, or a definitive timeline for completion, leaving market participants speculating about potential investors and strategic partnerships.
EPQL operates a gas-fired power plant located at the Qadirpur gas field, which remains a critical component of Engro Holdings’ energy portfolio. The plant contributes significantly to Pakistan’s energy generation capacity, supplying power while supporting the national grid with reliable electricity. The partial sale reflects a strategic approach to capital allocation, allowing Engro Holdings to potentially free up resources for other projects or investments while sustaining influence over a core operational asset.
Industry analysts suggest that this divestment could signal a broader portfolio rebalancing for Engro Holdings, aimed at optimizing its energy and industrial holdings while ensuring continued revenue generation from key subsidiaries. Retaining a majority stake allows the company to maintain decision-making authority, control over operational management, and long-term strategic planning, while potentially bringing in new investors to support future expansion or modernization initiatives.
The announcement comes amid a broader trend in Pakistan’s energy sector, where companies are evaluating capital structures and investment priorities in response to evolving regulatory, operational, and financial dynamics. Engro Holdings’ partial divestment strategy aligns with market expectations for efficient asset management while ensuring that strategic operations remain under the company’s supervision.
As EPQL continues to operate under Engro Holdings’ majority ownership, the company is expected to uphold its commitments to operational efficiency, regulatory compliance, and energy output targets. By maintaining control, Engro Holdings can safeguard long-term value creation for shareholders while exploring options for leveraging partial divestment proceeds to strengthen its broader energy portfolio.
The divestment also underscores Engro Holdings’ proactive approach to financial and strategic planning, reflecting a balance between capital management, shareholder value, and operational oversight. Market observers will be closely monitoring the transaction as more details emerge regarding the buyer, transaction terms, and potential impact on the company’s overall energy strategy. This move highlights the company’s continued focus on sustaining leadership in Pakistan’s energy sector while pursuing prudent investment management practices.
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