Man Industries India (MIIL) shares gained 2.08% to ₹497.60 following the announcement of a credit rating upgrade. According to reports from Business Standard, Crisil Ratings has upgraded the company's long-term bank loan facilities rating to 'Crisil A+/Stable' from the previous 'Crisil A/Stable' rating. The agency has also reaffirmed the company's short-term rating at 'Crisil A1'. The stock movement reflects positive investor sentiment toward the improved credit profile.
The rating upgrade is primarily attributed to MIIL's strategic acquisition of National Pipe Company (NPC) in Saudi Arabia, completed on May 21, 2026. As reported by Business Standard, this acquisition is expected to significantly improve the company's scale of operations by over 50-60% and operating profit before depreciation, interest, and tax (OPBDIT) margins to around 14-15%, compared to 12.3% in fiscal 2026. The acquisition adds 430,000 metric tonnes of LSAW/HSAW capacity in Saudi Arabia and provides immediate entry into the growing Saudi Arabian market.
The upgrade reflects MIIL's improved operating performance, with OPBDIT margins improving to 12.3% in fiscal 2026 from the previous 8-10% range, driven by better product mix focused on exports and value-added products. According to Business Standard, the NPC acquisition was valued at ₹1,000 crores (USD 102 million) and was funded through a mix of debt (USD 70 million) and equity (USD 32 million). Despite the incremental debt, the company's financial risk profile is expected to remain comfortable with strong liquidity position.
Man Industries India is one of the largest submerged arc welding (SAW) pipe players in India with a combined capacity of 11.75 lakh tonne per annum, distributed equally between helically submerged arc welded (HSAW) and longitudinal submerged arc welded (LSAW) and electric resistance welded (ERW). As reported by Business Standard, the ratings continue to reflect the company's established market position and healthy financial risk profile, though these strengths are partially offset by integration risks associated with the NPC acquisition and working capital-intensive nature of operations.
