CRISIL assigns rating on Pilani Investment -; Industries Corporation's NCDs at 'AA/Stable'

17 Jan 2022 , 11:52 AM

CRISIL Ratings has assigned its ‘CRISIL AA/Stable’ rating to the non-convertible debentures of Pilani Investment And Industries Corporation Limited (PIICL) and reaffirmed its ‘CRISIL A1+’ rating on the company’s commercial paper programme.

At around 11:51 AM, Pilani Investment & Industries Corporation was trading at Rs1,930 per share up by Rs10.75 or 0.56% on the BSE.

As per rationale report, the ratings reflect the strong financial flexibility of PIICL as a holding company in the Birla group backed by the large market value of its investments in strong operating companies. 

The ratings also factor in the strong reputation of the Birla group and investments in operating entities with healthy credit risk profiles and presence in diverse sectors such as cement, textiles, fashion, telecommunication, chemicals and financial services. These strengths are partially offset by exposure to market-related risks.

CRISIL Ratings has followed the holding company approach for arriving at the ratings as PIICL is one of the companies that holds shares for various Birla group entities such as Hindalco, Grasim, ABCL, ABFRL, Ultratech, Century Textiles and Vodafone Idea Ltd and others.

CRISIL Ratings has also combined the business and financial risk profiles of PIC Realcon Ltd and PIC Properties Ltd as these are 100% subsidiaries of PIICL.