Nicholas Piramal downgraded

MUMBAI, AUG 1: The credit rating of Nicholas Piramal India Ltd owned by Ajay Piramal group has been downgraded by Crisil on account of the company8217;s higher than expected gearing levels indicating huge borrowings following the hiving off of its glass and bulk drugs business. The rating of the Rs 9.35 crore non-convertible debentures NCDs and Rs 65.9 crore NCDs have been downgraded from AA8217; to AA8217; as the funding plan of acquisitions continues to be a key rating sensitivity, Crisil said in a statement.

NPIL is one of the large players in the domestic pharmaceutical formulations market registered a net sales of Rs 442.72 crore during 1997-98 and a net profit of Rs 56.54 crore. The company8217;s glass and bulk drugs business were hived off as separate subsidiaries with effect from April 1, 1998. Further, NPIL also sold 40 per cent equity stake in the glass subsidiary to venture capital investors.