Birla Cotsyn assigned IVR B+/Stable rating on Rs 40 crore bank facilities

Birla Cotsyn India Ltd has been assigned an IVR B+/Stable rating by Infomerics for its Rs 40 crore long-term bank facilities, comprising a Rs 30 crore term loan and Rs 10 crore cash credit. The company underwent NCLT resolution in Jan 2025, was acquired by new promoters, and restarted cotton yarn manufacturing at Malkapur in Sep 2025. Rating strengths include ~Rs 60 crore promoter funding and an existing 48,000-spindle asset base. Weaknesses include execution risk, weak initial profitability, single-product dependence, and stretched liquidity.