Acuité Ratings & Research Limited("ACUITE") vide its letter dated 13th April, 2021, has intimated about revision / upgrade in the Ratings of various credit facilities / exposures of Mukand Ltd as below:
Total Fixed Deposits Rated - Rs. 120.48 Crore
Fixed Deposit Rating - ACUITE FA / Outlook: Stable (Upgraded from FBB/Negative)
Total Bank Facilities Rated - Rs. 1,045.48 Crore
Long Term Rating - ACUITE BBB-/ Outlook: Stable (Upgraded from ACUITE BB/Negative)
Short Term Rating - ACUITE A3 (Upgraded from ACUITE A4+)
The rating upgrade and revision in the outlook from 'Negative' to 'Stable' is driven by the company's significant progress in land parcel monetization and disinvestment in a joint venture company while utilizing the proceeds to repay the outstanding debt from lenders and group companies, thereby improving on the financial risk profile. The company has received an approx. Rs. 1,510 Cr through these transactions during FY2021 and reduced debt to a major extent which is also expected to reduce the interest burden. Acuité believes that the monetization transactions will not only strengthen the overall capital structure and the liquidity position of the company but also lead to an uptick in net profitability levels going forward. Further, there is a significant likelihood of the completion of a second phase of the monetization plans in FY2022 which should reduce the debt further and support the working capital requirement of the company.
Shares of MUKAND LTD. was last trading in BSE at Rs.89.75 as compared to the previous close of Rs. 85.65. The total number of shares traded during the day was 45725 in over 767 trades.
The stock hit an intraday high of Rs. 90.4 and intraday low of 86. The net turnover during the day was Rs. 4077524.