Rating Details	Rating Type	BFR
	Dissemination Date	Current (20-Dec-24 )	Previous (21-Dec-23)
	Action	Maintain	Maintain
	Rating	BFR 2+	BFR 2+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	Following the merger, the ownership of ISL vests with Ms. Erum Balwani (~43%) and Mr. Muhammad Uraib Balwani (~41%), whereas ~15% is free float. The business acumen of the sponsoring family is conside
	Governance	The board structure has been strengthened through the addition of independent directors. ISL currently has a seven-member board, chaired by Ms. Erum Balwani. There are two independent, one non-executi
	Management and Client Services	A well-developed organizational structure is in place with a qualified and experienced management team to manage operations. The Company offers sound client services such as online trading and access
	Internal Controls and Regulatory Compilance	ISL has developed all requisite policies and has separate internal audit and compliance functions, strengthening the control framework.
	Business Sustainability	The Company has diversified its revenue streams by incorporating corporate finance, MFS/MTS, and commodity brokerage. Moreover, following the merger, ISL has solidified its position amongst the leadin
	Financial Sustainability	At end-Sep'24, ISL had an adequate leveraging of ~30%. The Company has a strong equity base of ~PKR 1,775mln at end-Sep'24.

Key Rating Drivers

Intermarket Securities Limited ('ISL' or the 'Company') successfully merged with EFG Hermes Pakistan Limited (EFGH) during CY24, enhancing its market presence. During 9MCY24, the Company demonstrated remarkable growth in its topline emanating from effectively incorporating the foreign client base of EFGH. Moving forward, it is imperative from a ratings perspective to maintain topline diversity, uphold controls, and diligently monitor risks.

About the Entity
	Legal Structure	Listed
	Year of Establishment	27-Sep-99
	Type of License	Trading and Self-clearing
	Majority Ownership	Erum Balwani | ~43%

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com	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.