Nicholas Piramal debt plans under rating watch: The Credit Rating Information Services of India Ltd (Crisil) has put two non-convertible debenture (NCD) programmes of Nicholas Piramal (India) Ltd (NPIL) amounting to Rs 75.40 crore, on rating watch with developing implications. The instruments currently have a AA+ rating. NPIL, as part of its restructuring plans, plans to hive off its glass and bulk drugs divisions into separate subsidiaries -- Gujarat Glass Ltd and Global Bulk Drugs Ltd. The plan also involves the sale of 40 per cent equity stake in Gujarat Glass for a consideration of around Rs 118 crore.Possible Savings denied NBFC status: The Reserve Bank, in exercise of the powers conferred on it under Section 45IA of the Reserve Bank of India Act, 1934, rejected the application for certificate of registration submitted by Possible Savings & General Finance, a non-banking financial company having its registered office at Ghatkopar (West) in Mumbai. The central bank rejected the NBFC'sapplication on February 18, 1998. The company will not be able to transact the business of an NBFC.
Orient Paper bonds downgraded: The Credit Rating Information Services of India Ltd (Crisil) has downgraded the Rs 50-crore bonds programme of Orient Paper Industries Ltd from A to BBB+. The rating agency has also downgraded the company's Rs 25-crore NCD programme from A to BBB+. The revised rating indicate that the degree of safety regarding the timely payment of interest and principal on the instrument is moderate. The revised ratings reflect the sustained weakening of the paper and cement industry with production disruption at one of the company's manufacturing facilities.
Repo auction: Reserve Bank has announced a three-day fixed rate repos in government of India dated securities on February 24, 1998 for parties holding SGL account and current account with it at Mumbai. The repo rate has been fixed at 9 per cent per annum. RBI has said that the applications may be accepted fully orpartially. Payment by applicants will be on February 24, 1998 up to 2.30 pm and the repurchase by the RBI on February 27, 1998.
Bombay Burmah debt plans downgraded: Crisil has downgraded two NCD programmes of Bombay Burmah Trading Corporation (BBTC), amounting to Rs 8.21 crore, from AA+ to AA. The rating agency has also downgraded the company's fixed deposit programme from FAA+ to FAA. It has, however, reaffirmed the P1+ rating assigned to BBTC's commercial paper programme. The rating revision reflects the average business performance of BBTC's operating division, which together with increasing gearing levels has led to a decline in interest coverage.
14-day T-Bills auction: The Reserve Bank of India has announced the auction of 14-day government of India treasury bills. Tenders should be submitted in the prescribed form on February 27, 1998 before 2.30 pm. The results will be announced the same day evening. Payment by successful bidders will be on March 2, 1998.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
