The Pakistan Credit Rating Agency Limited
09-May-25
Analyst
Hina Harram
hina.harram@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Debt Instrument Rating | Oct-24
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
Related Research
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PACRA Withdraws the Ratings of Mughal Iron & Steel Industries Limited - PPSTS - PKR 2.5bln - Oct-24
| Issuer | Mughal Iron & Steel Industries Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 2500 mln |
| Issuance Date | 21-Oct-24 |
| Tenor | 0.5 Years |
| Redemption Date | 22-Apr-25 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (09-May-25 ) |
Previous (13-Nov-24 ) |
|
| Action | Redeem | Initial |
| Long Term | - | A+ |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Mughal Iron & Steel Industries Limited has issued a rated, privately placed, unsecured PPSTS of PKR 2.5bln on Oct 21, 2024, to finance the working capital requirement of the Company. The tenor of the instrument was 6 months and carried a profit rate of 6M KIBOR + 110bps. The instrument has been redeemed on April 22, 2025. The Company has paid in full all markup and the outstanding principal amount.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of Mughal Iron & Steel Industries Limited - PPSTS - PKR 2.5bln - Oct-24
.
About
the Entity
Mughal, is a public limited company incorporated in 2010, is primarily engaged in the manufacturing and sale of billets, girders, and rebars. The Company has also expanded its product base by entering in non-ferrous segment. Mughal operates with a melting capacity of 590,000M.T., rerolling capacity of 630,000M.T., and non-ferrous recycling capacity of 90,000M.T. Currently, a nine-member BoD is monitoring the overall functioning under the chairmanship of Mr. Mirza Javed Iqbal. Mr. Khurram Javaid is on the execution lead as CEO and the driving force behind the Company. Other senior tier management is associated with the Company for a fairly long period of time. Diversified skill set and experience of multiple years reflected from member's profile, contribute to strong foot printing of the Company in the market