LT Foods rose 3.59% to Rs 56.25 after India Ratings and Research and CRISIL upgraded the credit ratings of the company.
In a BSE filing made during market hours today, the company said that India Ratings and Research has assigned LT Foods a long-term issuer rating of IND A with a positive outlook.
Offering the ratings rationale, the ratings agency said that the positive outlook reflects India Ratings expectation of a sustained improvement in LT Foods financial profile, resulting from an increase in the EBITDA and a stable working capital cycle, translating into lower debt levels.
Separately, after market hours yesterday, LT Foods said that CRISIL revised its outlook on the long-term bank facilities of the company to positive from stable while reaffirming the rating at CRISIL A- . The short-term rating has been reaffirmed at CRISIL A2+ .
What is a municipal bond?
A municipal bond is a kind of debt instrument where investors offer loans to local governments. They are issued by civic bodies for specific projects and usually have a 10-year tenure. The ULB pays the annual interest on the bonds to the investor at the decided rate. The difference between a bank loan and a municipal bond is that any institution can secure a bond only if it has favourable credit ratings. The bond helps raise funds from the stock market. The bond also increases the number of investors available to the civic body, as compared to a loan from a single bank.
The benchmark indices traded with minor gains in early afternoon trade. Auto, IT and realty indices witnessed selling pressure. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 30.37 points or 0.07% at 46,129.38. The Nifty 50 index gained 8.80 points or 0.07% at 13,522.65.
In the broader market, the S&P BSE Mid-Cap index added 0.73% while the S&P BSE Small-Cap index rose 0.67%. Both these indices outperformed the Sensex.
The market breadth was strong. On the BSE, 1,754 shares rose and 1,056 shares fell. A total of 190 shares were unchanged.
The undertone of the market was upbeat amid positive global cues following the progress in coronavirus vaccine. Robust inflows from foreign institutional investors and improving domestic economic scenario also boosted the investor s risk appetite.
The PSU Bank on Friday (11 December) announced it will issue basel-III compliant bonds to raise up to Rs 1,500 crore.In a regulatory filing, Union Bank said, The bank is issuing Basel III compliant perpetual debt instruments in the nature of debentures eligible for inclusion in additional tier 1 capital series XXVII of Rs 500 crore with green shoe option up to Rs 1,000 crore (maximum Rs 1,500 crore) on private placement basis.
The coupon on the bonds is fixed at 8.73% per annum and have a face value of Rs 10 lakh per bond. The bonds are rated IND AA/ Stable by India Rating & Research and BWR AA/Negative by Brickwork Rating India.
Union Bank of India to issue bonds to raise Rs 1500 crore businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.