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Shares of the Anil Ambani-led Reliance Infrastructure (RInfra) plunged more than 4 per cent on Wednesday after rating agency Crisil downgraded its rating on the ₹585-crore non-convertible debentures (NCDs) and ₹125 crore bonds of the company to ‘CRISIL D’.
This rating, according to the agency, is assigned to “instruments in default or are expected to be in default soon”.
“RInfra has not paid on the due date interest and principal amounts on NCDs which were due for maturity on July 27, 2018. The company in a ... filing has intimated that it expects to make these payments in early August 2018 from the proceeds of the proposed sale of its Mumbai power business to ATL (Adani Transmission),” CRISIL said.
RInfra has made disclosure regarding payment of interest and final redemption of NCDs on Friday night.
On July, 31, CARE rating agency has also downgraded RInfra’s instruments putting it on ‘Credit Watch with Developing Implications’ in view of announcement of the deal with Adani Transmission Limited for the sale of RInfra’s integrated Mumbai power business.
“The revision in the ratings on the bank facilities/instruments of R-Infra takes into account the deterioration in the liquidity profile of the company on account of delay in the sale of its integrated Mumbai power business,” CARE noted.
Earlier this week, RInfra said the Rs 18,000 crore transaction for the sale of Integrated Mumbai Distribution Business of RInfra to Adani Transmission will be closed by next week. The deal is expected to help RInfra pare its debt and become a Rs 3,000-crore cash surplus company.
“Post the transfer, RInfra's business profile will also undergo a shift as the Mumbai GTD business contributed nearly 80% to its existing operating profits. Construction and defence businesses have been identified as RInfra's key growth areas,” CRISIL said.
It noted, however, that while the transaction got approvals from shareholders, Competition Commission of India and Maharashtra Electricity Regulatory Commission (MERC), it remains subject to lenders' approvals. The company has do far received no objection certificate from 70 per cent of the lenders, it said.
RInfra has reported decline of 19 per cent in its consolidated net profit .to Rs 271 crore for the quarter ended June 30 as against Rs 334 crore in the same period last year. The company’s total consolidated income from operations during the quarter declined to Rs 7,616 crore as against Rs 7,656 crore in the year-ago quarter.
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