Baba Ramdev's Pathanjali downgraded by CARE
CARE has downgraded Pathanjali Ayurved, the degradation was basically due to funds outflow to Pathanjali consortium Adhigrahan, net worth of Pathanjali was estimated at 2,873 crores in March this year.
Credit rating agency CARE has downgraded Pathanjali Ayurved from A+ to A-, the reason was weak financial condition of Pathanjali Ayurved, constrain financial condition of company was funds outflow to Pathanjali consortium Adhigrahan pvt. Ltd., created to acquire Ruchi soya industries ltd, which is into edible oil industry.
Ruchi soya industries have informed the exchanges that NCLT ( National company law tribunal) on September 6 that it has approved the 4,350 crores resolution plan with minor modifications, which was eventually accepted by the bidder.
Order states that Pathanjali Ayurved ltd. (PAL) infused funds in SPV will be non-convertible debentures and preference shares amounting to 900 crores. The aggregate level is much larger than earlier committed by PAL, the rating agency told.
The net worth of Pathanjali Ayurved was 2,873 crores in March 2019. Pathanjali is Baba Ramdev initiative of manufacturing organic and Desi consumer products. Pathanjali Ayurved is giving a good competition to international brands in Indian FMCG market.