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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 135.00 | ACUITE C | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 1493.52 | ACUITE D | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 430.48 | - | ACUITE D | Downgraded | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 2059.00 | - | - |
| Rating Rationale |
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Acuité has downgraded the long-term rating to ‘ACUITE D' (read as ACUITE D) from ‘ACUITE B’ (read as ACUITE B) on the Rs. 1493.52 crore and ‘ACUITE C' (read as ACUITE C) from ‘ACUITE B’ (read as ACUITE B) on the Rs.135.00 crore and ‘ACUITE D' (read as ACUITE D) from 'ACUITE A4' (read as ACUITE A four) for the short-term on the Rs. 430.48 crore , for the bank facilities of OPGS Power Gujarat Private Limited. The rating continues to be flagged as “Issuer Not Cooperating” and is based on the best available information. The downgrade is on the basis on the report about the ongoing delays in their repayments and publicly available information.
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| About the Company |
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OPGS was incorporated in 2007 as a special purpose vehicle (SPV). The company is engaged in thermal power generation. OPGS is a 62.07 per cent held subsidiary of GPIPL, which in turn is a step-down subsidiary of OPV with the balance equity held by promoter controlled entities. The company has two units with capacities of 150 MW each at Kutch, Gujarat. The first unit was commissioned in April 2015 and the second in June 2016. The units use imported coal as feedstock. OPGS supplies power to industrial consumers in Gujarat, Madhya Pradesh, Maharashtra and Punjab. The present promoters of the company are Mr. Ashok Kumar Goyal, Mr. Ragothaman Bhuvaragha Murthy ,Mr. Prashant Kedarnath Goyal,Mr Mahalingam Bharathi. The registered office of the company is in Chennai,Tamil Nadu.
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| Non-cooperation by the issuer/borrower: |
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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 noncooperation by the issuer along with an 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: |
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The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit ratingis based. |
| About the Rated Entity - Key Financials |
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The rated entity has not shared the latest financial statements despite repeated requests. |
| Rating Sensitivity |
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"No information provided by the issuer / available for Acuite to comment upon." |
| Material Covenants |
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None |
| Liquidity Position |
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Not Applicable |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
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None |
| Status of non-cooperation with previous CRA |
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None |
| Any other information |
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Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm |
| Note on Complexity Levels of the Rated Instrument |
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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.
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