CARE Ratings Limited, has reaffirmed the credit rating of Forbes and Company Limited's outstanding Non-convertible Debentures (after enhancement of amount from Rs. 75 Crores to Rs. 120 Crores) and the long term Bank Facilities as CARE AA- Stable.
The reaffirmation of ratings assigned to bank facilities and enhanced praposed NCD issue of Forbes and Company Limited (FCL)derive comfort from the aspect of FCL being part of the resourceful Shapoorji Pallonji group and the financial flexibility the group's flagship company Shapoorji Pallonji and Company Private Limited (SPCPL, rated 'CARE AA+ Stable') enjoys.
The rating also factors in streamlined income realisation from its High performance tool portfolio along with its real estate venture - 'Vicinia', the market leadership position in electric water purifier and vacuum cleaner segment of key subsidiary Eureka Forbes Limited. (EFL, rated 'CARE AA- Stable'). The ratings also factors favourably the Credit Enhancement on the part of debt of its key subsidiary Shapoorji Pallonji Forbes Shipping Company (SPFSL, rated 'CARE AA(SO), Stable') from SPCPL.
The rating strengths are however tempered by continuing weak operating performance of Lux International AG (LIAG) along with FCL's substantial exposure towards loss-making wholly owned subsidiary Forbes Technosys Limited (FTL) whose debt is backed by Corporate Guarantee from FCL. The timely realization of envisaged revenue from its Real Estate project and improvement in operating and financial performance of its key subsidiaries would be key rating sensitivities.
Shares of FORBES & COMPANY LTD.-$ was last trading in BSE at Rs.2460.05 as compared to the previous close of Rs. 2481.3. The total number of shares traded during the day was 438 in over 122 trades.
The stock hit an intraday high of Rs. 2505 and intraday low of 2451.1. The net turnover during the day was Rs. 1078972.