ICRA has also taken note of the recent developments in SWSL.
Mumbai: IcraNSE 0.63 % has downgraded the long-term rating of Shapoorji Pallonji and Company (SPCPL) to ‘A+’, from ‘AA-’, and short-term ratings to ‘A1’ from ‘A1+’, citing slower-than-anticipated progress achieved by the company in terms of its deleveraging plans through equity infusion and asset monetisation.
The agency also removed the rating from the watch with developing implications and assigned a negative outlook.
Icra said it has noted that the promoters have infused a total of Rs 2,270 crore in SPCPL during H1FY20, including Rs 1,900 crore from the proceeds of the Sterling & Wilson Solar (SWSL) initial public offering (IPO), however, contrary to the expectations of the ratings agency, the net debt levels have not come down because the same has been deployed to meet the funding requirements of several group companies, especially in the real estate business, both for meeting their debt obligations as well as construction finance to complete the ongoing projects.
ICRA has also taken note of the recent developments in SWSL, wherein its promoters – SPCPL and Khurshed Yazdi Daruvala, requested for revised repayment schedule of the inter-corporate deposits (ICDs) due from their jointly held entities to SWSL.
As part of the commitments made by the promoters during the Initial Public Offering (IPO) of SWSL, a portion of the net offer proceeds from the IPO were to be utilized for repayment of these ICDs.
Source: ICRA
