Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 500.00 ACUITE AA- | Stable | Assigned -
Bank Loan Ratings 2600.00 ACUITE AA- | Stable | Reaffirmed -
Non Convertible Debentures (NCD) 100.00 ACUITE AA- | Stable | Assigned -
Non Convertible Debentures (NCD) 300.00 ACUITE AA- | Stable | Reaffirmed -
Commercial Paper (CP) 65.00 - Not Applicable | Withdrawn
Total Outstanding 3500.00 - -
Total Withdrawn 65.00 - -
 

Rating Rationale

­Acuité has assigned the long-term rating of ‘ACUITE AA-’ (read as ACUITE double A minus) on the Rs. 500.00 Cr. bank facilities of Ambit Finvest Private Limited (AFPL). The outlook is ‘Stable’.
­Acuité has assigned the long-term rating of ‘ACUITE AA-’ (read as ACUITE double A minus) on the Rs. 100.00 Cr. non-convertible debentures facility of Ambit Finvest Private Limited (AFPL). The outlook is ‘Stable’.
Acuité has reaffirmed the long-term rating of ‘ACUITE AA-’ (read as ACUITE double A minus) on the Rs. 2600.00 Cr. bank facilities of Ambit Finvest Private Limited (AFPL). The outlook is ‘Stable’.
Acuité has reaffirmed the long-term rating of ‘ACUITE AA-’ (read as ACUITE double A minus) on the Rs. 300.00 Cr. on the facility of non-convertible debentures of Ambit Finvest Private Limited (AFPL). The outlook is ‘Stable’.
Acuité has withdrawn the short term rating on the Rs.65.00 Cr. commercial paper program of Ambit Finvest Private Limited (AFPL) without assigning any rating as it is a proposed facility. The rating withdrawal is in accordance with Acuite’s policy on withdrawal of rating as applicable to the respective facility / instrument. The rating is being withdrawn on account of request received from the Company.

Rationale for the rating
The rating continues to factor in AFPL’s experienced management, significant support from marquee investors and strong resource raising ability. The rating also takes into consideration the diversified business profile as well as the established presence of Ambit Group in investment banking and asset management businesses supported by strong management and wide base of institutional clients. The capital infusion in FY2020 from the marquee investor, Poonawalla Group has resulted in healthy capitalization levels and low leverage at AFPL along with stronger ability to raise funds from banks and financial institutions. At a consolidated level, Ambit Group’s networth stood at Rs. 1518.80 Cr. as on March 31, 2024. Acuité has also noted the shift in AFPL’s business strategy from structured finance book to a more granular SME lending which is expected to provide some cushion against asset quality shocks going forward.
Some of these rating strengths however, are constrained by the geographic concentration and low seasoning of AFPL’s SME portfolio.On a consolidated level, the earnings quality of Ambit Group is susceptible to volatility since asignificant portion of its revenues is dependent on capital market conditions.

Analytical Approach

Key Rating Drivers