Exide To Raise Rs 80 Cr Via Fds, Ncds

Exide Industries plans to raise Rs 80 crore in the form of fixed deposits and non-convertible debentures on the strength of the good ratings obtained from Icra. The rating agency has upgraded the companys fixed deposit programme from MAA+ to MAAA indicating highest safety.

An MAAA has also been assigned to the companys programme for raising 18-month non-convertible debentures worth Rs 15 crore.

Exide has also obtained an A1+ rating from Icra, indicating highest safety, for a Rs 30-crore commercial paper issue.

It has, however, received a LAA+ for its long-term NCD programme worth Rs 35 crore.

In a release, Icra said Exide Industries has been able to increase its market share for both automative and industrial batteries.

 

Its financial strength has enabled the company to enhance capacity through expansion and modernisation of existing plants well ahead of the competition.

The companys operating margin has increased by 4.5 per cent over the past two years despite a rise in material cost.

This is because it has been able to minimise costs with the help of the profit centre concept. Besides fixed costs were distributed over a much larger turnover, the release added.