By Bhavana Mhavarkar

India Ratings and Research (Ind-Ra) has placed Baidyanath Renewables Private Limited’s (BRPL) Long-Term Issuer Rating of ‘IND BBB’ on Rating Watch Evolving (RWE). The Outlook on the earlier rating was Stable. The instrument-wise rating actions are given below:

Instrument Type

Date of Issuance

Coupon Rate

Maturity Date

Size of Issue (million)

Rating/Rating Watch

Rating Action

Term loans

-

-

15 September 2028

INR53.1

IND BBB/RWE

Placed on RWE

Non-fund-based working capital  facilities

-

-

-

INR346.6

IND A2/RWE

Placed on RWE

KEY RATING DRIVERS

The RWE follows the information of an amalgamation of BRPL with its subsidiary Baidyanath Power Private Limited. Ind-Ra will continue to closely monitor the developments and resolve the RWE once it has additional information on the completion of the proposed merger and its impact on BRPL’s business and financial profile. The transaction is subject to approvals from the High Court.


RATING SENSITIVITIES

The RWE indicates that the ratings may be affirmed, upgraded or downgraded upon resolution. Ind-Ra will resolve the rating watch once there is clarity on the merger.


COMPANY PROFILE

Promoted by Mr. Pranavkumar Sureshkumar Sharma, BRPL was incorporated in 1999 in Mumbai to serve as a holding company of the Baidyanath group’s renewable energy projects. It holds a 0.8MW solar power capacity on its own and a 108.65MW wind power capacity through its subsidiaries.


FINANCIAL SUMMARY

Particulars

FY18

FY17

Revenue (INR million)

6.81

3.30

EBITDA (INR million)

-4.94

0.98

EBITDA margin (%)

-

29.7

Interest coverage (x)

-

0.01

Net leverage (including unsecured borrowings from group companies) (x)

-

-

Source: BRPL (Standalone financial)


RATING HISTORY

Instrument Type

Current Rating/Outlook

Historical Rating/Outlook

Rating Type

Rated Limits (million)

Rating

17 August 2018

Issuer rating

Long-term

-

IND BBB/RWE

IND BBB/Stable

Term loans

Long-term

INR53.1

IND BBB/RWE

IND BBB/ Stable

Non-fund-based working capital  facilities

Short-term

INR346.6

IND A2/RWE

IND A2


COMPLEXITY LEVEL OF INSTRUMENTS

For details on the complexity level of the instruments please visit https://www.indiaratings.co.in/complexity-indicators.

SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

ABOUT INDIA RATINGS AND RESEARCH

About India Ratings and Research: India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies and project finance companies. 

Headquartered in Mumbai, Ind-Ra has seven branch offices located in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Pune. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank. 

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For more information, visit www.indiaratings.co.in.

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Applicable Criteria

Analyst Names

  • Primary Analyst

    Bhavana Mhavarkar

    Analyst
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th floor, West Wing Plot C-2, G Block. Bandra Kurla Complex Bandra (East), Mumbai 400051
    022 40356167

    Media Relation

    Namita Sharma

    Manager – Corporate Communication
    +91 22 40356121