Ind Ra rates Dalmia Bharat Sugar's bank limits at 'AA' with stable outlook

3 Feb 2022 , 12:46 PM

India Ratings and Research (Ind-Ra) has taken some rating actions on Dalmia Bharat Sugar and Industries Limited’s (DBSIL) debt facilities.

Ind Ra assigned IND AA/Stable/IND A1+ to the fund-based limits worth Rs400cr of the company. Further, commercial paper programme has  been affirmed at IND A1+ rating. 

According to the rating rationale, Ind-Ra continues to take a consolidated view of DBSIL and its wholly owned subsidiary Himshikhar Investment Limited. In December 2020, DBSIL’s board had approved the merger of Himshikhar with DBSIL and the merger is awaiting the regulatory approvals.

Himshikhar is a registered non-banking financial company mainly holding equity investments in the group. Given the negligible contribution from the subsidiary, DBSIL’s consolidated credit profile largely mirrors its standalone profile.

At around  12:48 PM, Dalmia Bharat Sugar & Industries was trading at Rs437.70 apiece down by Rs1.85 or 0.42% on the BSE.