* The issuer did not co-operate; based on best available information.
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.
Erratum- This press release is to rectify an error in the selection of the applicable criteria, which has now been corrected.
Rating Rationale
Acuité has downgraded its long-term rating to 'ACUITE BB' (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) on the Rs. 25.00 Cr. Non Convertible Debentures (NCD) of Finstars Capital Limited (FCL). The rating is continues to be flagged as “Issuer Not-Cooperating” and is based on the best information available.
About the Company
Finstars Capital Limited (FCL) was incorporated in 1989, as Gopalka Motor Finance limited and was involved in providing Motor Finance. In 2017, the promoters of Sunrise Group took over control of the company and changed the name of Finstars Capital Limited. FCL is a registered NBFC with RBI. The objective of promoters to engage in lending activities was to diversify Sunrise Group’s revenue stream. FCL is engaged in providing secured credit to SME’s. FCL has two business segments, trading in Securities and NBFC operations. Mr. Barun More, Mrs. Nisha More, Mr. Umangkumar Navinbhai Thakkar, Mr. Ashishkumar Rajmalbhai Pancholi are directors and Mr. Miteshan Bindusagar Agrawal is the additional director.
Unsupported Rating
Not Applicable
Non-cooperation by the issuer/borrower:
Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
Limitation regarding information availability
Rating Sensitivity
"No information provided by the issuer / available for Acuite to comment upon."
Liquidity Position
"No information provided by the issuer / available for Acuite to comment upon."
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
Non-Covertible Debentures (NCD)
Long Term
15.00
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB- | Negative)
08 Aug 2023
Non-Covertible Debentures (NCD)
Long Term
10.00
ACUITE BBB- | Negative
(Reaffirmed)
Non-Covertible Debentures (NCD)
Long Term
15.00
ACUITE BBB- | Negative
(Reaffirmed)
08 Aug 2022
Proposed Non Convertible Debentures
Long Term
25.00
ACUITE BBB- | Stable
(Assigned)
* The issuer did not co-operate; based on best available information.
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
Not Applicable
INE08XA07011
Non-Convertible Debentures (NCD)
Listed
SEBI
13 Oct 2022
12.06
13 Oct 2025
10.00
Simple
ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
Not Applicable
INE08XA07029
Non-Convertible Debentures (NCD)
Listed
SEBI
13 Oct 2022
12.06
13 Oct 2027
15.00
Simple
ACUITE BB | Downgraded | Issuer not co-operating* ( from ACUITE BB+ )
* The issuer did not co-operate; based on best available information.
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.
