Press Release

Press Release

May 04, 2026

Magnum Ventures Limited
Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	230.00	0.00	ACUITE BB \| Stable \| Reaffirmed	-	SEBI
Non Convertible Debentures (NCD)	190.00	0.00	Not Applicable \| Withdrawn	-	SEBI
Total Outstanding	230.00	0.00	-	-	-
Total Withdrawn	190.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuite has reaffirmed the long-term rating of ' ACUITE BB' (read as ACUITE double B) on the Rs. 230.00 Cr. Non-Convertible Debentures of Magnum Ventures Limited. The outlook is 'Stable'.

Acuité has withdrawn its long-term rating on the Non Convertible Debentures of Rs. 190.00 Cr. of Magnum Ventures Limited without assigning any rating as it is a proposed facility. The rating is being withdrawn on account of the request received from the company and in accordance with Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument.

Rationale for Reaffirmation
The rating reaffirmation takes into account the improvement in the company’s scale of operations, with operating revenue increasing to Rs. 336.26 Cr. during 9MFY26 from Rs. 276.86 Cr. in 9MFY25. The company has undertaken refinancing of debt amounting to Rs. 150 Cr., which has resulted in an elongation of the repayment tenure, easing of liquidity pressures, and a reduction in the average cost of debt to around 13% from approximately 18% earlier. The rating derives comfort from the company’s moderate financial risk profile, marked by a gearing of 0.97 times in FY25, an interest coverage ratio of 2.42 times, and a debt service coverage ratio of 1.98 times in FY25. However, these strengths are partly offset by a decline in operating margins to 13.33% in 9MFY26 as compared to 19.69% in 9MFY25, along with intensive working capital requirements.
Acuité also notes the company’s proposed corporate restructuring through the demerger of its paper business into a separate entity to be named Magnum Paperz Limited, while the hotel business will continue to remain under Magnum Ventures Limited. The said demerger is expected to be completed by FY28.

About the Company

Magnum Ventures Limited, incorporated in 1980, is a Delhi based company, engaged in trading and manufacturing of Newspaper, printing paper, grey, duplex boards and also owns and operates a Hotel under the name “Country Inn & Suites by Radisson” managed by the Radisson group. The paper unit has a capacity of 85,000 metrics tons per annum for manufacturing of Newspaper, printing paper, grey, duplex boards. Company also has an inhouse 6 MW power plant for captive consumption. The hotel property located at Sahibabad, in the National Capital Region, comprises 216 rooms in four categories i.e. 64 Standard Rooms, 76 Superior Rooms, 70 Club Rooms, 6 Executive Suites, 9 banquet halls, 5 restaurants, 52-seater room theatre and 60,000+ sq. ft. of meeting space. The hotel holds the distinction of being the first all-vegetarian establishment to receive a formal 5-star certification from the HRACC, Ministry of Tourism. To expand its food and beverage business, the company has launched a new restaurant under the "Little Italy" franchise. Shiv Pravesh Chaturvedi, Parveen Jain, Abhay Jain, Pradeep Kumar Jain, Jyoti, Shalini Rahul, Aanchal Jain and Jyoti Bansal are currently directors of the company.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone approach on the business and financial risk profile of Magnum Ventures Limited (MVL) to arrive at rating.

Key Rating Drivers

Strengths

Established Track record of operations and Experienced management
MVL engaged in trading and manufacturing of Newspaper, printing paper, grey and duplex boards for more than forty years. It also runs a hotel under the name “Country Inn & Suites by Radisson” which is managed by the Radisson group. Mr. Shiv Pravesh Chaturvedi, Mr. Parveen Jain, Mr. Abhay Jain, Mr. Pardeep Kumar Jain, Ms. Jyoti, Ms. Shalini Rahul, Ms. Aanchal Jain and Ms. Jyoti Bansal are currently directors of the company.

Moderation in scale of operations and improvement in profitability margins
The company has achieved a revenue of Rs. 396.24 Cr. in FY25 as against Rs. 461.21 Cr. in FY24. The decrease of 14.09% is attributed to the decline in the realizable value of paper products and stagnancy in scale of operations in hotel business. The EBITDA margins of the company stood at 19.64% in FY25 as compared to 11.68% in FY24. The improved EBITDA margins has been driven by the strategic transition to the utilization of cost-effective raw materials in the manufacturing of paper products, coupled with initiatives to improve operational efficiency within the paper division through targeted capital expenditure. Additionally, the company has focused on producing value added paper products and has experienced a shift in the consumer profile, further contributing to this margin improvement. The PAT margins of the company stood at 2.40% in FY25 as compared to 5.36% in FY24. The decline in the PAT margins is noticed majorly because of the increase in the interest cause stemming from the Rs. 180 Cr. 18% Non-Convertible Debentures. During 9MFY26, the company reported revenue of Rs. 336.26 Cr. as against Rs. 276.86 Cr. in 9MFY25, registering growth driven by higher sales volumes in the paper division. However, operating margins moderated to 13.33 percent in 9MFY26 from 19.69 percent in 9MFY25, primarily on account of a decline in margins in the paper division. Going forward, the company is likely to improve the topline on account of better demand of value added paper products in medium term.

Moderate Financial Risk Profile
The financial risk profile of the company remains moderate, marked by a net worth of Rs. 215.30 Cr. as on March 31, 2025, as against Rs. 153.68 Cr. as on March 31, 2024. The improvement in net worth is supported by internal accruals and an increase in the issued share capital by Rs. 7.53 Cr., arising from the allotment of share warrants along with a premium of Rs. 37.50 Cr. The total debt stood at Rs. 208.13 Cr. as on March 31, 2025, compared to Rs. 198.60 Cr. as on March 31, 2024, with the increase primarily driven by the allotment of Rs. 30.00 Cr. of NCDs in FY25. The gearing improved to 0.97 times in FY25 from 1.29 times in FY24 on account of the strengthened net worth base. The interest coverage ratio moderated to 2.42 times in FY25 from 12.06 times in FY24, mainly due to the high 18 percent coupon on existing NCDs. The debt service coverage ratio improved to 1.98 times in FY25 from 0.99 times in FY24. TOL/TNW improved to 2.11 times in FY25 from 2.96 times in FY24.

The company had earlier proposed to raise Rs. 240 Cr. as fresh NCDs to lower the coupon rate and extend the repayment tenure. However, in August 2025, the company revised this plan and instead raised Rs. 50 Cr. of secured NCDs under the existing ISIN at 18 percent, maturing on August 31, 2027. Of this amount, Rs. 40 Cr. was utilised towards capital expenditure and Rs. 10 Cr. for working capital needs. In Q3FY26, the company availed a fresh term loan of Rs. 150 Cr. from Tourism Finance Corporation of India Limited (TFCI) at a lower interest rate and for a tenure of around 12 years. The entire proceeds were used to repay a part of the high-cost NCDs, completing the planned refinancing through a lower-cost debt facility. Additionally, the company issued 20,00,000 equity shares to Neo Special Credit Opportunities Fund at Rs. 30 per share, with the proceeds earmarked for working capital requirements. Acuité believes that the financial risk profile of MVL is expected to remain moderate over the medium term. The repayment of the outstanding NCDs maturing on August 31, 2027, remains a key monitorable.

Weaknesses

Intensive Working Capital Operations
The working capital operations of the company remained intensive marked by GCA days which stood at 137 days as on as on 31st March 2025 against 108 days as on 31st March 2024. The inventory days of the company stood at 73 days as on 31st March 2025 against 38 days as on 31st March 2024. The company has been trying to maintain adequate inventory of raw and finished good to safeguards itself from any kind of short-term price volatility in the market. The debtor days of the company stood at 54 days as on 31st March 2025 against 51 days as on 31st March 2024. This was because the credit terms with the customers were on the similar lines. On the other hand, the creditor days of the company stood at 87 days as on 31st March 2025 against 54 days as on 31st March 2024. Acuité believes that MVL is likely to stay on the same lines on account of nature of the business.

Highly fragmented and competitive industry
In paper division- The Company is operating in highly competitive and fragmented industry. It is exposed to intense competition from several players operating in the industry. The kraft paper manufacturers in India are exposed to the risk of volatility in wastepaper prices, largely due to intense competition. Because of competitive pressures, players face challenges in passing on increased costs to end users. Business risk profile will remain constrained by exposure to the downturn in the paper industry. The rise in the prices of duplex paper over that of wastepaper is expected to be gradual, rendering the profitability susceptible to volatility in the price of paper. Furthermore, any abrupt change in raw material prices due to supply-demand scenario can lead to distortion of prices and affect the profitability of the company.
In hotel division- The hospitality sector is vulnerable to downturns in both the domestic and global economy. It is also sensitive to high competition and cyclicality. In a downturn, premium hotels are more negatively impacted because, despite high operating costs, their revenue per available room falls more precipitously than that of midsized or budget hotels. As a result, the cash flow from premium properties is more vulnerable to economic downturns. Also, the Indian hotel business is seeing fierce rivalry as a result of the expansion of domestic players and the growing presence of overseas competitors.

ESG Factors Relevant for Rating

The company is committed to environmental, social, and governance (ESG) principles, emphasizing sustainability and responsibility. The company promotes eco-friendly practices through ventures like a vegetarian hotel and recycled paper manufacturing, reducing deforestation and supporting ecological balance. It prioritizes using sustainable resources, recycling waste, minimizing fossil fuel use, and lowering its carbon footprint. Socially, it invests in people, fosters a positive organizational culture, and maintains strong customer relationships. The company adheres to ethical standards, strategic clarity, and aligns with UN Sustainable Development Goals, ensuring long-term sustainable growth while actively protecting the environment.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Growth in operating income by more than 50%.
Timely completion of the demerger process

Potential triggers (individual or collective) for a downward rating action:

Any large debt funded capex, impacting the financial risk profile and liquidity
Revenue falling by 20-25 percent and steep decline in profitability

All Covenants

1. Escrow Accounts:
The issuer undertakes and agrees as follows:
- to establish, maintain and operate each of the Escrow Accounts in accordance with the trust deed and the Escrow Agreement;
- to not close any Escrow Account prior to the Final Settlement Date without the consent of debenture trustee;
- on and from the Deemed Date of Allotment, all the receivables of the issuer in relation to the Hotel Division and Paper Division should be deposited to the escrow account of the Hotel division and Paper Division respectively and should be utilized in accordance with the escrow agreement;
-the Escrow Accounts shall be operated solely in accordance with the Escrow Agreement and withdrawals from the same shall be permitted only as per the Escrow Agreement.
2. Subordinated Debt:
The Issuer may avail Subordinated Debt from a member of the Promoter Group on or after the Deemed Date of Allotment provided that:
- the aggregated subordinated debt and the existing financial indebtedness availed by the issuer from the promoter group is at all times Rs. 15.00 Cr. or less.
- the subordinated debts carry a coupon/interest of a maximum of 6%.
3. Security Cover:
The issuer should ensure that the security set out is at all times sufficient to provide at least 100% security cover in relation to the Debenture Outstanding.
4. Financial Covenants:
The Issuer shall ensure compliance with financial covenants till the final settlement date to the satisfaction of the debenture trustee. The issuer undertakes to submit all the necessary documents, information and certification as may be required by the debenture trustee to evidence compliance with the financial covenants.

Liquidity Position

Adequate

The liquidity position of the company is adequate. MVL generated net cash accruals of Rs. 55.30 Cr. as on March 31, 2025, against debt repayment obligations of Rs. 12.00 Cr. during the same period. The current ratio stood at 1.65 times as on March 31, 2025, as against 1.69 times as on March 31, 2024. Further, the refinancing of debt amounting to Rs. 150 Cr. has resulted in an elongation of the repayment tenure, easing liquidity pressures and reducing the average finance cost. Acuité believes that the liquidity of MVL will remain a key monitorable on account of the bullet repayment of the outstanding NCDs maturing on August 31, 2027.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	396.24	461.21
PAT	Rs. Cr.	9.50	24.70
PAT Margin	(%)	2.40	5.36
Total Debt/Tangible Net Worth	Times	0.97	1.29
PBDIT/Interest	Times	2.42	12.06

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
08 Jul 2025	Non-Covertible Debentures (NCD)	Long Term	150.00	ACUITE BB \| Stable (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	15.00	ACUITE BB \| Stable (Reaffirmed)
	Proposed Non Convertible Debentures	Long Term	240.00	ACUITE BB \| Stable (Assigned)
	Non-Covertible Debentures (NCD)	Long Term	15.00	ACUITE BB \| Stable (Reaffirmed)
04 Jul 2025	Non-Covertible Debentures (NCD)	Long Term	150.00	ACUITE BB \| Stable (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	15.00	ACUITE BB \| Stable (Reaffirmed)
	Non-Covertible Debentures (NCD)	Long Term	15.00	ACUITE BB \| Stable (Reaffirmed)
13 Dec 2024	Non-Covertible Debentures (NCD)	Long Term	150.00	ACUITE BB \| Stable (Upgraded from ACUITE C)
13 Dec 2024	Proposed Non Convertible Debentures	Long Term	30.00	ACUITE BB \| Stable (Assigned)
30 May 2024	Non-Covertible Debentures (NCD)	Long Term	150.00	ACUITE C (Assigned)
30 May 2024	Proposed Non Convertible Debentures	Long Term	5.00	ACUITE Not Applicable (Withdrawn)
23 Jan 2024	Proposed Non Convertible Debentures	Long Term	5.00	ACUITE Provisional C (Assigned)
23 Jan 2024	Proposed Non Convertible Debentures	Long Term	150.00	ACUITE Provisional C (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	INE387I07013	Non-Convertible Debentures (NCD)	Listed	SEBI	11 Mar 2024	18	31 Aug 2027	150.00	Simple	ACUITE BB \| Stable \| Reaffirmed
Not Applicable	INE387I07013	Non-Convertible Debentures (NCD)	Listed	SEBI	18 Mar 2025	18	31 Aug 2027	15.00	Simple	ACUITE BB \| Stable \| Reaffirmed
Not Applicable	INE387I07013	Non-Convertible Debentures (NCD)	Listed	SEBI	18 Feb 2025	18	31 Aug 2027	15.00	Simple	ACUITE BB \| Stable \| Reaffirmed
Not Applicable	INE387I07013	Non-Convertible Debentures (NCD)	Listed	SEBI	12 Aug 2025	18	31 Aug 2027	50.00	Simple	ACUITE BB \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Proposed to be Listed	SEBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	190.00	Simple	ACUITE Not Applicable \| Withdrawn

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Siddharth Garg
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁴ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.