Magnum Ventures Limited has informed the Exchange about Credit Rating
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Awaiting price reaction for this filing.
Acuité Ratings & Research has reaffirmed 'ACUITE BB | Stable' on the company's existing Rs. 180 Cr Non-Convertible Debentures and assigned the same rating on Rs. 240 Cr of proposed NCDs, taking the total rated NCD quantum to Rs. 420 Cr. The rating reflects improved EBITDA margins (19.64% in FY25 vs 11.68% in FY24), though operating income declined to Rs. 396 Cr from Rs. 461 Cr due to lower paper realisations. The company plans to refinance Rs. 170 Cr of existing high-cost (18%) debt through the new NCD issue, which is expected to lower the coupon rate and extend repayment tenure, with Rs. 40 Cr earmarked for paper segment capex and Rs. 30 Cr for working capital. A larger Rs. 90 Cr capex programme is targeted for completion by end of FY26.
The reaffirmation at a stable outlook signals continuity in credit quality, but the BB rating remains in speculative grade territory. Shareholders should watch for meaningful improvement in interest coverage (currently 2.42x, down sharply from 12.06x) once the planned debt refinancing at a lower coupon kicks in, which could support earnings recovery.