Rating Details	Rating Type	BFR
	Dissemination Date	Current (25-Aug-23 )	Previous (26-Aug-22)
	Action	Maintain	Maintain
	Rating	BFR 2+	BFR 2+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	IGI Holdings Limited fully owns IGI Finex as its subsidiary. The assigned rating incorporates the business acumen and the financial strength of the sponsoring group.
	Governance	The board of IGI comprises four directors including the CEO. Two non-executive directors are present along with three board committees for added oversight.
	Management and Client Services	A qualified and experienced management team is present with a lean organizational structure. The Company provides sounds client services including research and online trading facilities.
	Internal Controls and Regulatory Compliance	A robust internal control framework is further boosted by an outsourced internal audit function. Separate departments exist for risk management and compliance functions. The Company has formulated all
	Business Sustainability	IGI's revenue stream lacks diversification in its topline, primarily concentrated in equity brokerage income and financial income on saving deposits. IGI earned ~PKR 54mln during 1HCY23, as compared t
	Financial Sustainability	The company operates without a proprietary book, resulting in limited exposure to market risk. The ratings draw comfort from a low-leveraged capital structure. At end-Jun'23, the equity of IGI stood a

Key Rating Drivers

During 1HCY23, IGI's brokerage revenue declined on account of the decrease in market volumes. Moving forward, it is imperative for the Company to diversify its revenue streams to better be able to resist market shocks. The management's ability to retain its market share and boost trading volumes remain critical. Moreover, retention of key management and sustainability of profitability continue to remain a prominent factor for ratings.

About the Entity
	Legal Structure	Public Limited
	Year of Establishment	06-Jan-94
	Type of License	Trading and Self-clearing
	Majority Ownership	IGI Holding Limited

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com	Methodology | Broker Fiduciary Rating | Jan-23	Sector Study | Brokerage & Securities | Jan-23

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