ICRA takes note of the merger announcement of NCPL with GNFC

New Delhi, Mar 14 (UNI) ICRA today said there would not be any adverse impact on the A1+ rating assigned to the Rs 25 crore CP programme of Narmada Chematur Petrochemicals Ltd (NCPL), in view of its merger with Gujarat Narmada Valley Fertilisers Ltd (GNFC).

NCPL is a subsidiary of GNFC, which has 56.45 per cent stake in the company.

The Boards of these two companies have announced a merger in the ratio 1:3, subject to statutory approvals.

ICRA's view is based on the current operating and financial strengths of GNFC as well as NCPL, as well as on its expectations that the operating and managerial synergy arising from the merger will have an overall favourable impact on the credit profile of the merged entity.

GNFC is engaged in the manufacture of fertilisers like Urea, Ammonium Nitro Phosphate (ANP) and Calcium Ammonium Nitrate (CAN) and industrial chemicals like methanol, acetic acid, formic acid and nitric acids.

During the first nine months of 2005-06, GNFC achieved net profit of Rs 201 crore, while NCPL achieved a net profit of Rs 198 million, for the same period.

UNI RA SR DS1547