KARACHI: BIPL Securities said on Tuesday it has formally become a subsidiary of AKD Securities Ltd.
In a stock filing on the Pakistan Stock Exchange, the brokerage house said its parent company, BankIslami Pakistan, transferred its entire stake constituting 77.12 per cent of the share capital to AKD Securities.
BankIslami Pakistan announced in April 2019 that it would sell BIPL Securities as the stock brokerage business was not in line with the Shariah-compliant mandate of the Islamic lender. BIPL Securities was earlier named KASB Securities and was listed as an asset on the balance sheet of KASB Bank. BankIslami Pakistan acquired KASB Bank, along with KASB Securities as its subsidiary, in May 2015.
The carrying value of BIPL Securities on the balance sheet of BankIslami was Rs522.8 million at the end of March. The holding company sold the brokerage to AKD Securities for Rs663.2m or Rs8.60 per share, according to a previous regulatory filing.
The stock price of BIPL Securities rose 7.5pc to Rs26.28 apiece, with the trading volume clocking in at 49,500 shares.
Published in Dawn, June 30th, 2021