Press Release February 28, 2025 GMR AMBALA CHANDIGARH EXPRESSWAYS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	103.48	ACUITE BBB- | Stable | Assigned	-
Non Convertible Debentures (NCD)	72.81	ACUITE BBB- | Stable | Assigned	-
Total Outstanding	176.29	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned the long-term rating at ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 103.48 crore bank facilities of GMR Ambala Chandigarh Expressways Private Limited (GACEPL). The outlook is ‘Stable’. Acuite has assigned the long-term rating at ‘ACUITE BBB-’(read as ACUITE triple B minus) on the Rs. 72.81 crore  Non- Convertible Debentures of GMR Ambala Chandigarh Expressways Private Limited (GACEPL). The outlook is ‘Stable’.  Rationale for Rating The assigned ratings takes into account the long & established track record of operations exhibited by improved toll collections reflected on y-o-y basis. Acuite also notes the additional comfort derived from the advance instalments made for servicing debt obligations till August 2025. Further, GACEPL has sufficient cushion in form of free fixed deposits stood at Rs. 69 Cr. as on 31st December 2024 (excluding DSRA) to prepay further debts. However, the above-mentioned strengths are partly off-set by susceptibility of toll collection towards traffic volumes.

About the Company

­Bangalore Based, GMR Ambala Chandigarh Expressways Private Limited it is incorporated in 2005. The Company engaged in development of highways on build, operate and transfer model on toll basis. This entity is a Special purpose Vehicle which has entered into a Concession Agreement with National Highways Authority of India for carrying out the project of Design, Construction, Development, Improvement, Operation etc. between Ambala and Chandigarh at NH21. Currently Mr. Bangaru Raju Obbilisetty Mr. Mani Santosh Bommidala, Mr. Arun Kumar Sharma, Ms. Kavitha Gudapati and Mr. Bajrang Lal Gupta are the directors of the company.

Unsupported Rating

­Not Applicable.

Analytical Approach

­Acuité has taken a standalone view of the business and financial risk profile to arrive at the rating of GACEPL.

Key Rating Drivers

Strengths

­Established track record in toll collection The company is operating & collecting toll since achieving COD in 2008. GACEPL, wholly owned subsidiary of GMR Group, having vast and long track of experience for more than three decades of managing PPP projects. However, the operations were affected in FY 21 due to pandemic & farmers' protest. As of now, increased toll collection has been seen in the operating profile of the company in current financial year and expected to continue with the aid of strong promoter group which has been extended in the form of Compulsory Convertible Debentures which stood at Rs. 211 Crore. Acuite believes that the GACEPL will continue to benefit from its extensive experience of the promoters in medium to long term. Favourable outcome post implementation of restructuring plan The company's account was restructured on 3rd January 2024. Initially, the company had to pay 10% of the restructured debt after implementation of RP. However, the company has pre-paid 16.52% of the restructured sustainable debt post implementation of Resolution plan (RP) till 31-12-2024 as per the terms and conditions and in compliance of guidelines which covers the repayment obligation till August 2025. As per the RP, the outstanding debt divided into two parts i.e. Sustainable Debt of Rs. 169.88 Cr. (70%) and unsustainable debt of Rs. 72.81 Cr. (30%) in the form of NCD (issued at 0.01%). Furthermore, the interest rate for sustainable debt has also been revised at 8.7% p.a. thereby the reduction of 2.7% in the interest rate. Improvement in Toll Collections The company has collected Rs. 34.99 Cr. excess toll revenue till 15th February 2025 against the projected toll revenue as per the approved RP due to closure of Shambu border. The closure of the Shambu border benefited the toll collections for GMR Expressway, leading to rise in collections by ~42%. This additional toll collection leads to cash surplus available with the company to the extent of Rs. 69 Cr. as on 31st December 2024 in their escrow account in form of FDs. In order to utilize surplus cash available, company has proposed the lenders to pre-pay the term loan (sustainable) to an extent of another Rs. 60 Cr.  Acuite believes that the company is expected to generate excess toll collections, which would improve the operational profile of the company in near to medium term.

Weaknesses

­Susceptibility of toll collection towards traffic volumes The cash flows are entirely toll based; thus operations are susceptible to fluctuations in traffic movements. Traffic movement is linked to the level of economic activity in and around the operational area. Any event or regulatory interventions likely to affect traffic movement may create pressure on toll revenues, thereby affecting the cash flows of the company. In such situations, the company is dependent on the sponsor for funding support.

Rating Sensitivities

­Steady cash flows. Significant deterioration in liquidity profile

All Covenants

­The borrower shall ensure that the following financial ratios have been maintained during the tenure of the respective facilities.  Financial covenants stipulated post implementation of resolution plan:    Parameters  Benchmark Adj. average DSCR  >=1.25 Post implementation of resolution plan, that DSCR shall be calculated as per the formula stated in the TEV report. The DSCR shall be maintained at an average rate of 1.25 from the cut-off date to the end of the concession period.  The borrowers shall, based on its audited annual financial statements, provide a certificate to the lender certifying DSCR achieved in that financial year.

Liquidity Position

Adequate

­The liquidity position is adequate, indicating the company is generating surplus cash accruals against debt obligation for the same year. Further, the company has free fixed deposit of Rs. 69 Cr. as on 31st December 2024. Also, the additional comfort of same has been provided by the presence of DSRA which stood at Rs. 5.20 Cr. to the lenders and toll collection would be routed through an escrow account with waterfall mechanism. The average DSCR from between FY25-28 is expected to remain stood comfortable at 2.90 times.

Outlook - Stable

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Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	81.15	71.50
PAT	Rs. Cr.	(27.24)	(36.26)
PAT Margin	(%)	(33.57)	(50.72)
Total Debt/Tangible Net Worth	Times	(0.73)	(0.66)
PBDIT/Interest	Times	1.82	1.10

Status of non-cooperation with previous CRA (if applicable)

­None

Any other information

­None.

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History :

­Not Applicable.

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Not Applicable INE655H07015 Non-Convertible Debentures (NCD) 01 Nov 2023 0.01 30 Jun 2027 72.81 Simple ACUITE BBB- | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.02 Simple ACUITE BBB- | Stable | Assigned State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2027 31.70 Simple ACUITE BBB- | Stable | Assigned Central Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2027 29.26 Simple ACUITE BBB- | Stable | Assigned Punjab National Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2027 26.90 Simple ACUITE BBB- | Stable | Assigned Bank of Maharashtra Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2027 10.98 Simple ACUITE BBB- | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2027 4.62 Simple ACUITE BBB- | Stable | Assigned

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Contacts

Mohit Jain Senior Vice President - Rating Operations Kartik Arora Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.