PACRA maintains Broker Management Rating of IGI Finex Securities Limited

IGI Finex Securities Limited (“IGI” or "The Company") demonstrates stability within Pakistan's brokerage sector, supported by capable management and the financial strength of the Packages Group. Management effectively leveraged strong FY25 equity market momentum (PSX volume +37% YoY, value +80% YoY; KSE-100 historic highs), driving strong 1QCY25 topline growth. Brokerage revenue rose notably to PKR 166 million (1QCY24: PKR 49 million). However, management faces cost control challenges, as elevated operating costs pressured net profit down to PKR 58 million (1QCY24: PKR 70 million). Management's strategic avoidance of a proprietary book mitigates market risk exposure. Prudent financial oversight is evident: the equity base (PKR 921m) and Liquid Capital Balance (PKR 702m) as of 1QCY25, exhibit a substantial buffer above regulatory minima, reflecting management's maintenance of a sound capital structure. Governance oversight is supported by specialized board committees and an experienced team. Management has implemented adequate controls, including outsourced internal audit, dedicated compliance/risk functions, and established policies, though board independence could be enhanced by an independent director. Client service execution includes equity research, online platforms, and digital complaint systems.
Moving forward, strengthening and diversifying core income streams, ensuring sustainability of market share and profitability, and successful execution of planned business strategies will be vital for IGI’s long-term growth. At the same time, maintaining a strong internal control framework, reinforcing governance practices, retaining experienced management personnel, and diligently monitoring emerging risks will remain equally important to safeguard financial stability and support continued business expansion.

About the Entity
IGI Finex Securities Limited is a wholly owned subsidiary of IGI Holdings Limited. IGI Holdings Limited is an investment holding company listed on PSX with strategic investments mainly in the financial sector. IGI Holdings Limited has four subsidiaries namely IGI Life Insurance (82.7%), IGI General Insurance (100%), IGI Investments (100%), and IGI Finex Securities Limited (100%). Major ownership of IGI Holdings (~72%) vests with Packages Group through sponsors (~32%) and associated entities (~40%). IGI Holdings which falls under the umbrella of "Packages Group" are ranked amongst the leading industrial groups of the Country with diversified interests in paper and paperboard, packaging, financial institutions, food, personal care, and real estate sectors. Strong affiliation and technical track record with international JV's have added to the success of companies within the Group. The CEO, Mr. Syed Raza Hussain Rizvi brings across over nineteen years of diversified experience in the fields of Management, Corporate Strategy, Business Development, Mergers & Acquisitions, and Capital Markets.