Archean Chemical Industries Limited's rating has been upgraded to [ICRA]BBB+(Stable) and withdrawn. The upgrade is due to the company's improved financial risk profile after raising Rs. 805 crore through an initial public offering (IPO) in November 2022. (1/4)
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The IPO proceeds were used to redeem non-convertible debentures, strengthening the capital structure & coverage metrics. Revenues & operating profitability remained strong in FY2022 & 9M FY2023, supported by robust demand & healthy realizations for bromine & industrial salt (2/4)
The rating takes into consideration the company's competitive advantage, long-term offtake agreement with Sojitz Corporation, and exposure to external factors such as excessive rainfall. (3/4)
ACIL's financial risk profile is comfortable, and the company has marketing arrangements to reduce business risks. However, the company's operations are exposed to high revenue concentration and external factors, such as excessive rainfall. (4/4)
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