CARE assigns BBB-; Stable /A3 (Triple B Minus; Outlook: Stable/ A Three) Credit Rating to K.P.I. Global Infrastructure Limited.
The ratings assigned to the bank facilities of KPI Global Infrastructure Limited (KPIL), derives strength from the experienced and resourceful promoter group, low off take and counterparty credit risk on account of long term Power Purchase Agreement (PPA) with reputed corporates for the entire existing and upcoming capacity of 15MW and 25MW respectively, established infrastructure for evacuation of power with timely receipt of payments from the off-takers. The ratings also take cognizance of favorable locational advantage of the solar power plant, satisfactory capacity utilisation factor (CUF), comfortable financial profile and favorable policy framework for solar power generation business on the back of various government-led reforms and incentives to encourage investments in this segment.
The rating, however, remained constrained on account of limited operational track record of its existing 15MW power plant, implementation & stabilisation risk associated with the upcoming solar plant of 25 MW, risk pertaining to continuity of PPA agreement and susceptibility of its profitability to fluctuation in interest rates, variation in climatic conditions & technological risk associated with the solar power plants.
The ability of KPIL to achieve and sustain the envisaged generation levels from its existing power plant, increase its scale of operations from the captive power production (CPP) segment, timely receipts of payments from the off takers and control over operations and maintenance (O&M) expenses shall be the key rating sensitivities. Further, timely commissioning and stabilization of upcoming 25MW solar power plant without any cost and time overrun shall also be critical.
Shares of K.P.I. Global Infrastructure Ltd was last trading in BSE at Rs.68.55 as compared to the previous close of Rs. 68.55. The total number of shares traded during the day was 1600 in over 1 trades.
The stock hit an intraday high of Rs. 68.55 and intraday low of 68.55. The net turnover during the day was Rs. 109680.