Press Release August 26, 2025 IINSPIRA SPRINGDALE PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	100.00	ACUITE B | Stable | Assigned	-
Total Outstanding	100.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has assigned its long-term rating of ‘ACUITE B’ (read as ACUITE B) on the Rs. 100.00 Cr. proposed Non-Convertible Debentures of Iinspira Springdale Private Limited (ISPL). The outlook is ‘Stable’. Rationale for rating assigned The rating assigned takes into account significant risks associated towards funding, implementation and demand for the project – 'Trees of Life'. Further, the rating also factors the susceptibility of company's operations towards inherent cyclicality in the real estate industry and regulatory risks associated with it. However, the rating draws comfort from the long-standing experience and established track record of promoter i.e Inspira group for more than two decades in real estate business.

About the Company

Incorporated on 8th May 2023, ISPL is a group company of Inspira group of the Bangalore. Currently, the group is into construction of project named – 'Trees of Life' consisting of 211 villas, in the Sarjapur region of Bangalore. ISPL is developing the project wherein ISPL will raise funds and pass it on to another group entity Inspira BM Construction LLP (BM construction) who is also the partial landowner, for the development of the project. The current directors of the company are Mr. Akarsh S and Mr. Aravinda MS.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuité has considered standalone business and financial risk profiles of ISPL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of the group with experienced management ISPL is a group company of Inspira Builders LLP, a Bangalore-based real estate developer engaged in commercial and residential projects. The firm is managed by Mr. Prabhu Ur, Mr. Aravind MS, and Mr. Akarsh Reddy. The group has over two decades of experience in real estate development through various executed projects. Inspira Group has completed ~18 projects and is currently having 4 ongoing projects. Further, the group has delivered over 1.5 million square feet of residential and commercial spaces.

Weaknesses

High project execution risk The project is being constructed at a cost of Rs. 480 Cr. to be funded through equity infusions of Rs 25.0 Cr, debt of Rs 100.0 Cr. and balance through customer advances of Rs. 355 Cr. Further, of the proposed NCD of Rs 100 Cr, Rs 47 Cr shall be utilised towards repayment of existing project debt (including unsecured loans from promoters) and balance towards project development. Also, while the promoters have infused Rs.12 Cr. as March 31, 2025, balance infusion is pending. Further, the funding risk remain high as majority of the project development is dependent on customer advances. On the implementation front, the group has acquired nearly 75% of the land as on March 31, 2025. However, for balance 25% of the land which yet to be acquired from the current landowners, the company is expected to raising funds through the proposed NCDs, timely raising of which is a key rating monitorable. Further, currently all land is being acquired in BM construction, who is also responsible to obtain all statutory approvals, post which the group is expected to start the sale of land and construction of villas. Hence, the implementation and the demand risk for the project remains high. Susceptibility to geographical concentration, real estate cyclicality, regulatory risks and intense competition in the industry The operations of the group are majorly located in and around Bangalore which keeps the firm exposed to geographic concentration risk. Further, the real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus the operating growth of real estate players. Hence, business risk profile will remain susceptible to risks arising from any industry slowdown.

Rating Sensitivities

Timely raising of debt to fund the project requirements Ontime completion of project without cost overruns and adequate realization of its customer advances Significant changes in regulations affecting demand and price

All Covenants

No further debt in any form can be raised by the obligor without investor consent Subordination deed satisfactory to investor to be executed wherever required No sales to be marked below the floor price set out in business plan for any project asset without consent of Investor Collateral cover of at least 2.5 times

Liquidity Position

Stretched

The liquidity profile of the project is marked stretched, on account of high dependency on advances from the customers. Further, the company is raising fresh funds of Rs.100 Cr. to repay some of the existing project levels borrowings of around Rs. 47 Cr. Moreover, the liquidity is expected to be supported once the company realises customer advances. Further, as per the proposed term sheet the company will receive a moratorium of two quarters for coupon payment and four quarters for repayment of the NCD, from the date of the first disbursement which shall ease cash outflows in the near term.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials :

The company was incorporated in May 2023. However, the operations have not yet started.

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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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 Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE B | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel Lead 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.