The Pakistan Credit Rating Agency Limited
25-Mar-26
Analyst
Ahmed Wadi Ullah
ahmed.wadiullah@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- 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 Debt Instrument Ratings of Mughal Iron & Steel Industries Limited | PP Sukuk After Successful Redemption
| Issuer | Mughal Iron & Steel Industries Limited |
| Instrument | Sukuk-I |
| Amount | PKR 3000 mln |
| Issuance Date | 02-Mar-21 |
| Tenor | 5 Years |
| Redemption Date | 02-Mar-26 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (25-Mar-26 ) |
Previous (10-Oct-25 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
Mughal Iron & Steel Industries Limited is a public limited company incorporated in 2010, 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 entering the non-ferrous segment, thereby enhancing its product portfolio and strengthening its market position. Mughal operates with an approximate melting capacity of 590,000 metric tons, a re-rolling capacity of around 630,000 metric tons, and a non-ferrous recycling capacity of nearly 90,000 metric tons. The Company is overseen by a seven-member Board of Directors, chaired by Mr. Mirza Javed Iqbal, while Mr. Khurram Javaid serves as the Chief Executive Officer. The senior management team consists of seasoned professionals with long-standing affiliations with the Company, ensuring operational continuity, strategic direction, and stability in 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
In March 2021, Mughal issued PKR 3bln in Listed, Secured, and Privately Placed Long-Term Islamic Certificates (Sukuk) with a 5-year tenor, including a 12-month grace period. Priced at 3MK+1.3% per annum, profit is paid quarterly on the outstanding principal. The security includes a first pari-passu hypothecation charge over movable assets with a 25% margin and was upgraded to a pari-passu charge within 120 days of disbursement. A Debt Payment Account (DPA) is maintained, with one-third of the installment (comprising principal plus profit) is accumulated each month by the 25th day, ensuring that the entire upcoming installment is deposited in the DPA by the 15th day of the third month. Following the completion of the redemption process, PACRA has withdrawn the ratings of Mughal Iron & Steel Industries Limited | PP Sukuk, in line with its standard rating practice.