CARE Ratings puts NDTV's bank facilities on ‘Credit watch with Developing Implications'; stock rallies 5%

5 Sep 2022 , 10:40 AM

NDTV Limited informed that CARE Ratings Limited has assigned the rating basis to the bank facilities of the company.

The rating agency has assigned a ‘CARE BB+’ rating to the company’s long-term bank facilities worth Rs42.14 crore. CARE has placed these instruments on Credit watch with Developing Implications.

Further, company’s short-term bank facilities worth Rs4 crore have been reaffirmed at ‘CARE A4+’ and placed on Credit watch with Developing Implications.

Following the exercise of the conversion option of warrants into equity shares of promoter group company RRPR Holding Private Limited (RRPRH), which owns 29.18% equity in NDTV by Vishvapradhan Commercial Private Limited, the ratings assigned to the bank facilities of New Delhi Television Limited (NDTV) have been placed on credit watch with developing implications (VCPL).

The ratings remain restrained by the firm’s significant exposure to group companies and revenue concentration risk since the company generates the majority of its income from advertisements, which exposes the company’s revenue profile to the business cycle of the advertisers, stated CARE in its rationale.

At around 10.43 AM, NDTV was trading at Rs540.85 up by 5% from its previous closing of Rs515.10 on the BSE. The scrip opened at Rs540.85 and touched intraday high and low of Rs540.85 and Rs540.85 respectively.

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