Chenab Limited to Sell Non‑Core Assets to Repay Debt
Chenab Limited (PSX: CHBL) approved the sale of three non‑core properties and machinery, with proceeds earmarked for debt repayment, aiming to strengthen its balance sheet without affecting core operations.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Sale of non‑core assets to repay debt strengthens Chenab’s balance sheet; Textile sector – Buy bias on CHBL.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- TextilePositively affected
Companies
Companies Mentioned
- CHBL· Positively affected · Buy bias
Mentions in This Briefing
Sectors: Textile — Positive · Buy bias. PSX tickers: CHBL. Sale of non‑core assets to repay debt strengthens Chenab’s balance sheet; Textile sector – Buy bias on CHBL.
Full Story
Open on ProPakistani## Board Approval and Purpose
Chenab Limited (PSX: CHBL) announced that its board, meeting on 9 September 2026, approved the disposal of three non‑core assets. The sale is contingent on consent from secured creditors and is intended solely to generate cash for the repayment of the company’s outstanding debt.
## Assets to Be Sold
- Weaving unit in Shahkot, Nankana Sahib – covering 197 kanals and 16 marlas, together with associated buildings, plant and machinery. - Property in Gatti, Faisalabad – a 16‑kanal and 13‑marla parcel on Chak No. 191 RB, Jhumra Road, including its buildings. - Open plots near Nishatabad, Faisalabad – four kanals and 2.5 sarsahi of land situated outside the company’s main manufacturing complex.
## Impact on Operations
The company emphasized that these assets are not part of its core textile manufacturing activities. Consequently, their disposal will not impair production capacity or market supply.
## Financial Rationale
All cash generated from the transactions will be directed to settle existing debt obligations, thereby improving Chenab’s leverage ratios and overall financial health.
## Outlook
By reducing debt, Chenab aims to lower financing costs and enhance shareholder value, positioning the firm for more stable future performance.