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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 6.85 | ACUITE BBB- | Stable | Assigned | - |
| Total Outstanding | 6.85 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has assigned the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 6.85 Cr. bank facilities of Spangle Energy Private Limited(SPEPL). The outlook is 'Stable'.
Rationale for rating The rating assigned considers the experience of Refex group in renewable energy segment, presence of long term PPA, stable payment track record from its off takers. Further, rating also considers the presence of co-obligor structure and cash pooling mechanism for servicing of debt obligations. However, the rating is constrained by modest financial risk profile, customer and geographical concentration risk and susceptibility of power generation to climate risk. |
| About the Company |
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Bangalore based Spangle Energy Private Limited(SPEPL) was incorporated in the year 2015,is part of Refex Group. The company acts as a Special Purpose vehicle for the limited purpose to develop, execute, manage and run solar power generation project. Present directors of the company are Mr. Dinesh Kumar Agarwal, Mr. Patrik Vijay Kumar Francis Arun Kumar and Mr. Saravanan Vasanthakumar.
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| About the Group |
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Refex Group comprises of various solar SPVs, including Scorch Solar Energy Private Limited, Sourashakthi Energy Private Limited and Spangle Energy Private Limited. Directors of these SPVs are Mr. Dinesh Kumar Agarwal, Mr. Patrik Vijay Kumar Francis Arun Kumar, Mr. Kamalibai, Mr. Ramaiah Ananthakumar and Mr. Saravanan Vasanthakumar. All the SPVs are engaged in developing, executing, managing and operating solar power projects at various locations.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has consolidated the business and financial risk profiles of Scorch Solar Energy Private Limited, Sourashakthi Energy Private Limited and Spangle Energy Private Limited. Acuite has consolidated the cash flows of the three SPVs as there exists a co-obligor structure wherein through existence of separate TRA accounts maintained with the banker, all the proceeds / receivables / cash flows of the Project shall be routed. In case of any deficiency in debt servicing by any or multiple entities, the combined pool of cash flows will be utilized towards debt servicing.
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| Key Rating Drivers |
| Strengths |
| Extensive experience of the management and established presence in renewable energy segment
Refex group-Solar SPVs-1 (RGS-1) comprises of three SPVs which are part of Refex group. These projects are ~74.00 percent owned by Refex Green Power Limited wherein ultimate holding company is Refex Renewables & Infrastructure Ltd (RRIL, erstwhile SunEdison Infrastructure Limited), which is held 44 per cent by Refex Holding Private Limited (Erstwhile Sherisha Technologies Private Limited). Refex group is involved in business of coal trading, ash handling for power plants, Refrigerant Gases, Renewable Energy Utility Grade EPC projects, O&M of Solar Power Plants, Solar IPP businesses. Refex Group follows conservative approach towards its capital management and manages the operations majorly through equity and internal accruals. RGS-1 entered into 25 years long term purchase power agreements (PPA) with around 2 off takers mitigating both demand and price risk associated with the projects. PLF of projects under the three SPVs remained in the range of 19 to 20.5 percent in FY25 and FY24. Since all the three SPVs are integral part of the Refex Group, it is expected to manage the O&M activity, which will ensure efficient operational metrics of the RGS-1. Acuité believes that the presence of strong management, assured off-takers, a long-term PPA, and moderate counterparty receivable risk expected to keep the business risk profile stable over the medium term. Presence of DSRA and Co-obligor structure The bank facilities availed by RGS-1 are backed by a Debt Service Reserve Account (DSRA) in the form of a fixed deposit, equivalent to two quarter's interest and principal for servicing the debt obligation. In addition, the bank facilities are supported by separate trust and retention account (TRA) for each SPV, through which all receipts from the SPVs shall be routed. Further, there is a cash sweep clause, which allows the lender to utilise the surplus amount in the TRA account towards the prepayment of the debt undertaken by the company. Furthermore, there is a co-obligor structure which allows to fill the shortfall in debt repayment in any of the SPV by other SPVs involved in the structure. Acuité believes, the structure associated with the debt ensures timely repayment of the debt obligations over the medium term. |
| Weaknesses |
| Moderate financial risk profile
The financial risk profile of the RGS-1 is moderate considering moderate gearing, networth and comfortable coverage ratios. The net worth stood at Rs. 26.96 Cr. as on March 31, 2025, from Rs. 25.25 Cr. as on March 31, 2024. The gearing (debt to equity) of the group stood moderate at 1.23 times as on March'25, as against 0.92 times as on March'2024. The total debt of RGS-1 stood at Rs. 33.21 Cr. as on March 31st 2025, which consists of a long-term debt of Rs.31.96 Cr, and CPLTD of Rs.1.26 Cr. However, RGS-1 cash flows remain sufficient to meet its debt obligations, as evidenced by above unity average debt service coverage ratio (DSCR) of 1.72 times during the tenure of the loan and the exercise of a cash sweep in prior years for prepayment of debt. The group has also received NCLT approval for conversion of Optionally Convertible Redeemable Preference Shares (OCRPS) into Optionally Convertible Redeemable Debentures (OCRDs) on a 1:1 basis in FY26. Acuité believes that the financial risk profile of the company will remain moderate over the medium term on account of the stable operating performance of the solar plant over the years. Geographical and customer concentration risks RGS-1 has an installed capacity of 7.98 MW, distributed across 3 locations served by two off takers—Bangalore Electricity Supply Company Limited (BESCOM) and Chamundeshwari Electricity Supply Corporation Limited (CESCL). Both the entities have entered into long-term Power Purchase Agreements (PPAs) for a tenure of 25 years with RGS-1. The projects are concentrated within Karnataka, indicating geographical concentration risk. Additionally, given that both off-takers are public sector entities, the portfolio reflects moderate customer concentration risk. Nevertheless, BESCOM and CESCL are recognized for their operational reliability and established presence in the power distribution sector, which helps mitigate associated risks. Susceptibility of operating performance to climatic risks The performance of the solar plant is highly dependent on favourable climatic conditions, including solar radiation levels, which have a direct impact on the plant load factor (PLF). Acuité believes that the company’s business profile and financial profile can be adversely impacted by the presence of inherent climate risk and regulatory risk in any instances of tariff revision. |
| Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix) |
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RGS -1 maintains a Debt Service Reserve Account (DSRA) equivalent to 2 quarters of principal and interest payments along with ESCROW mechanism.
Stress case Scenario Acuité believes that, given the presence of 2 quarters of DSRA and waterfall payment in ESCROW mechanism, RGS-1 will be able to service its debt on time, even in a stress scenario. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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RGS-1 liquidity is adequate marked by moderate generation of net cash accruals to its maturing debt obligations. The liquidity position of the company is adequately supported by presence of Trust and retention account to monitor the cash flows generated from the projects, presence of waterfall mechanism, presence of a Debt Service Reserve Account (DSRA), maintained in the form of fixed deposits, equivalent to two quarters of debt servicing obligations, covering both interest and principal repayments. The DSCR is expected to remain above unity with average DSCR at ~1.72 times until the tenure of the loans.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 9.65 | 9.71 |
| PAT | Rs. Cr. | 1.71 | 6.95 |
| PAT Margin | (%) | 17.75 | 71.53 |
| Total Debt/Tangible Net Worth | Times | 1.23 | 0.92 |
| PBDIT/Interest | Times | 2.15 | 5.09 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any Other Information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm |
| Note on complexity levels of the rated instrument |
Rating History : |
| Not Applicable |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
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