Withdrawal of credit rating of Rane Engine Valve Limited pursuant to merger with Rane (Madras) Limited.
Awaiting price reaction for this filing.
Following the NCLT Chennai Bench-approved merger of Rane Engine Valve Limited and Rane Brake Lining Limited into Rane (Madras) Limited, effective April 7, 2025, CRISIL has upgraded Rane (Madras) Limited's long-term rating from 'CRISIL A/Watch Positive' to 'CRISIL A+/Stable' and removed it from 'Rating Watch with Positive Implications'. The short-term rating has been reaffirmed at 'CRISIL A1'. These ratings cover total bank loan facilities of Rs. 682.75 Crore spread across 11 facilities from banks including HDFC, SBI, ICICI, Bank of Baroda, and others. Separately, CRISIL has withdrawn the ratings on Rane Engine Valve Limited's Rs. 220 Crore bank facilities (previously CRISIL BBB+/Watch Positive for long-term and CRISIL A2/Watch Positive for short-term) as the entity ceases to exist post-merger.
The upgrade to CRISIL A+/Stable reflects stronger creditworthiness of the merged entity and should translate into better borrowing terms and lower interest costs for shareholders. The rating withdrawal for REVL is a routine administrative step driven by the merger and carries no negative implication.