The Pakistan Credit Rating Agency Limited
12-Jan-26
Analyst
Anam Waqas Ghayour
anam.waqas@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
- Methodology | Corporate Rating | Jul-25
- Methodology | Debt Instrument Rating | Sep-25
Related Research
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PACRA Withdraws the Ratings of Mughal Iron & Steel Industries Limited | PPSTS | PKR 2.5 bLn | Jun-25 After Successful Redemption
| Issuer | Mughal Iron & Steel Industries Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 2500 mln |
| Issuance Date | 05-May-25 |
| Tenor | 0.5 Years |
| Redemption Date | 10-Nov-25 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (12-Jan-26 ) |
Previous (14-Jul-25 ) |
|
| Action | Redeem | Initial |
| Long Term | - | A+ |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Mughal Iron & Steel Industries Limited is a public limited company, incorporated in 2010, and is primarily engaged in the manufacturing and sale of long steel products, including billets, girders, and rebars. Over time, the Company has diversified its operations by expanding into a non-ferrous segment, strengthening its product portfolio and market positioning. Mughal operates with a melting capacity of approximately 590,000 metric tons, a re-rolling capacity of around 630,000 metric tons, and a non-ferrous recycling capacity of about 90,000 metric tons. The Company is governed by a seven-member Board of Directors, under the chairmanship of Mr. Mirza Javed Iqbal, while Mr. Khurram Javaid leads the organization as Chief Executive Officer. The senior management team comprises experienced professionals with long-standing associations with the Company, providing operational continuity, strategic oversight, and stability in business execution.
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About
the Entity
Mughal Iron & Steel Industries Limited is an established listed steel manufacturer with an integrated production footprint and a demonstrated operating track record across industry cycles.
About
the Instrument
Mughal Iron & Steel Industries Limited issued a rated, privately placed, unsecured Short-Term Sukuk (PPSTS) with an approved size of PKR 2.5 billion in June 2025, inclusive of a green shoe option of PKR 500 million. The green shoe option was not exercised, and accordingly, the actual issuance amounted to PKR 2.0 billion. The Sukuk carried a tenor of six months and offered a profit rate of 6-month KIBOR plus 110 basis points. The Company successfully redeemed the Sukuk in full at maturity, with both principal and profit paid on December 03, 2025, as evidenced by payment confirmations and regulatory filings. Following the completion of the redemption process, The Pakistan Credit Rating Agency Limited (PACRA) has withdrawn the ratings of Mughal Iron & Steel Industries Limited | PPSTS | PKR 2.0 billion | Jun-25, in line with its standard rating practice.