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Journalism of Courage
MUMBAI, MAR 15: Leading rating agency Investment Information and Credit Rating Agency ICRA has placed the highest safety MAAA8217; rating assigned to the Rs 50-crore non-convertible debenture programme of Gujarat Ambuja Cements Ltd GACL on a rating watch with developing implications8217; following its move to acquire equity stake in Associated Cement Companies and DLF Cements.
quot;This rating action has been taken following GACL8217;s acquisition of equity stake in DLF Cements Ltd and ACC and the postponement of a proposed GDR offering, for funding these acquisitions,quot; an ICRA release issued in Mumbai on Wednesday said. Besides, financial institutions have asked GACL to make an open offer to other ACC shareholders, sources said.
quot;However, the MA8217; rating assigned to HHFCL8217;s fixed deposit FD programme, which is not backed by a letter of comfort from GACL, has not been put under rating watch,quot; Icra said.
quot;GACL had initially funded the acquisition of DLF Cement for Rs 126.60 crore and ACC for Rs 455.10 crore through a mix of internal acquisition and short-term debt. GACL planned to raise 200 million through a GDR offering for repaying the short-term loans and funding these acquisitions. However, GACL had to postpone the GDR issue planned for February, 2000, due to procedural matters and pricing issues,quot; Icra said.
quot;The likely impact of the GDR offering on GACL8217;s gearing and other financial indicators, would get crystallised only after GACL firms up the details of the offering,quot; Icra added.
