TruCap Finance Limited has informed the Exchange with respect to revision in Credit Rating.
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Awaiting price reaction for this filing.
CARE Ratings has downgraded TruCap Finance's long-term credit rating from CARE BBB- to CARE BB+ (RWD), covering bank facilities of ₹750 crore and non-convertible debentures of ₹150 crore. The downgrade was driven by a weakening liquidity profile and a significant net loss of ₹66.60 crore in FY25, compared to a profit of ₹11.71 crore in FY24, mainly due to elevated credit costs of ₹72.80 crore. Asset quality has also deteriorated, with GNPA rising to 3.70% from 1.32% a year earlier. The rating remains on 'Watch with Developing Implications', pending clarity on the proposed acquisition of ~75% stake by the Marwadi Chandarana Group (MCG) for ₹206.87 crore, along with ₹100 crore in committed debt support from MCG and ₹20 crore from existing promoters.
Negative in the short term — the junk-grade rating signals higher borrowing costs, weaker investor confidence, and stretched liquidity (cash of ₹57 crore against ₹103 crore in debt repayments over three months). However, the MCG acquisition and capital infusion could provide long-term stability if regulatory approvals come through.