Upsurge Seeds of Agriculture Limited, a leading company in the agricultural sector, has recently received a significant milestone in its journey towards financial stability. On April 2, 2025, the company was assigned a CARE BBB rating by CARE Ratings Limited, a prominent credit rating agency. This rating was granted for the company’s long-term bank facilities valued at Rs. 66.31 crore. The rating comes with a Stable outlook, indicating that the company's financial position is expected to remain stable in the future.

Rating Breakdown and Rationale

The credit rating is based on a detailed evaluation of Upsurge Seeds of Agriculture Limited's business operations, financials, and overall economic conditions. The CARE BBB rating is a reflection of the company’s ability to meet its financial obligations in a timely manner. The "Stable" outlook further assures stakeholders that the company is likely to maintain its performance over the medium term, despite the inherent risks in the agricultural sector.

CARE Ratings has assigned the rating to Upsurge Seeds of Agriculture Limited after carefully considering several factors, including the company’s market position, its financial performance, and the nature of its business. With a diversified customer base and a strong presence in the agriculture industry, the company has shown resilience, particularly in meeting its debt obligations. This has resulted in the CARE BBB Stable rating.

The rating also highlights that Upsurge Seeds of Agriculture has a strong credit profile which is underpinned by its debt repayment capacity. The facilities covered by the rating include term loans and cash credit limits extended by Axis Bank Ltd. and Bank of India. These facilities are structured with equal monthly installments and cash credit options, which contribute to the overall stability of the company's financial position.

Breakdown of Bank Facilities and Loan Repayment

The company’s long-term bank facilities include:

• Term Loans: A total of Rs. 9.31 crore in loans with equal monthly installments starting from September 2024.

• Fund-based limits: Rs. 57 crore, consisting of cash credit limits provided by Axis Bank Ltd. and Bank of India.

This structured approach to debt management ensures that Upsurge Seeds of Agriculture Limited maintains sufficient liquidity while meeting its financial obligations. The careful allocation of funds and the terms of repayment are essential for the company's ongoing stability.

The Impact of the Rating on Upsurge Seeds of Agriculture Limited

The assignment of the CARE BBB Stable rating is a key indicator of the company’s strong financial health. This development will likely instill greater confidence among investors, banks, and other stakeholders, who are crucial to the company's continued growth and development. With access to favorable financing options and a proven ability to manage its debt, Upsurge Seeds of Agriculture Limited is well-positioned for further expansion in the agricultural sector.

Conclusion

In conclusion, the CARE BBB rating granted to Upsurge Seeds of Agriculture Limited by CARE Ratings Limited marks an important milestone in the company's progress. The Stable outlook ensures that the company remains financially robust and able to meet its future obligations. With the backing of CARE Ratings, Upsurge Seeds of Agriculture Limited can continue to focus on growing its business, expanding its market share, and ensuring long-term success in the agriculture industry.

The Current active IPO are Infonative Solutions Limited,Spinaroo Commercial Limited.

The Closed IPOs are  Retaggio Industries Limited.

.Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX