Press Release
Date: 04-Jun-24
PACRA upgrades Broker Fiduciary Rating of Ismail Iqbal Securities (Pvt.) Limited

Rating Details Rating Type BFR
Dissemination Date Current (04-Jun-24 ) Previous (13-Jun-23)
Action Upgrade Maintain
Rating BFR 3+ BFR 3
Outlook Stable Stable
Rating Watch - -

Rating Rationale Factor Comment
Ownership Mr. Ahfaz Mustafa holds the controlling stakes of the Company (~65%), while remaining shares are divided amongst family members. The strong business acumen of the primary sponsor enhances the ownershi
Governance A two-member board of directors is present along with the existence of an Audit Committee. Expansion of board size and inclusion of independent directors would enhance the Governance framework.
Management and Client Services A defined organizational structure is in place, with IISPL streamlining its departments to enhance operational efficiency during 9MFY24. An experienced management team is in place; however, segregatio
Internal Controls and Regulatory Compilance The Company has enhanced its control framework during 9MFY24 through the addition of an underwriting discipline. Policies and procedures are designed to ensure regulatory compliances. Internal control
Business Sustainability The Company relies on equity brokerage as the primary source of revenue. In line with the market activity, the revenue has increased by ~86% to ~PKR 93mln during 9MFY24 as compared to ~PKR 50mln durin
Financial Sustainability The Company's streamlining of its organizational structure has improved its allocation of expenses, uplifting the profit after tax to ~PKR 149mln in 9MFY24 as compared to loss of ~PKR 47mln in SPLY. T

Key Rating Drivers Ismail Iqbal Securities (Pvt.) Limited ('IISPL' or the 'Company) has strengthened its market presence by strategically targeting HNWI's and diversifying its product range, amplifying its reach. The primary sponsor's keen business insight led to major gains in proprietary investments during 9MFY24. Going forward, upholding top-line growth, revenue diversification, and sustainability of profitability are vital for sustained ratings.

About the Entity
Legal Structure Private Limited
Year of Establishment 06-Aug-04
Type of License Trading and Self-clearing
Majority Ownership Mr. Ahfaz Mustafa (~65%)

Regulatory Disclosures Analyst Applicable Criteria Related Research
Hassaan Ahmad

Assessment Framework | Broker Fiduciary Rating | Jan-24

Sector Study | Brokerage & Securities | Jan-24

Disclaimer This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.