Press Release December 31, 2024 SUVITA REAL ESTATES PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	105.00	ACUITE C | Assigned	-
Total Outstanding	105.00	-	-
Total Withdrawn	0.00	-	-

Errata- This press release publishes inclusion of a Criterion in the heading of Applicable Criteria and All Covenants in the rationale of Suvita Real Estates Private Limited which was erroneously missed in the earlier PR. The detailed review of the rating was communicated through press release dated February 21, 2024.

Rating Rationale

Acuité has converted the provisional rating of ACUITE Provisional C (Read as Acuite Provisional C) to final and assigned the long-term rating of ACUITE C (read as ACUITE C) on Rs. 105.00 Cr of Non-Convertible Debentures (NCDs) of Suvita Real Estates Private limited (SREPL) The conversion from provisional rating to the final rating reflects the fulfilment of the appointment of a SEBI registered debenture trustee, execution of debenture trust deed, receipt of the final term sheet and confirmation from trustee regarding compliance. Rationale for rating The rating takes into account the delay in the repayments of existing NCD by company which was due on 30th September 2023. Further, the rating also factors in the refinancing of NCDs which happened at a significant higher coupon payment, creating an additional stress on its liquidity.

About the Company

Incorporated in 2019, Suvita Real Estate Private Limited (SREPL) is wholly own subsidiary of Shapoorji Pallonji Real Estate Private Limited (SPREPL) (Formerly known as Shapoorji Pallonji Construction Private Limited) and the ultimate parent company is Shapoorji Pallonji and Company Private Limited. The current directors of the company are Mr. Rajesh Baxi, Mr. Kanishka Phatak and Mr. Jotish Jha.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of SREPL to arrive at the rating.

Key Rating Drivers

Strengths

Strong and experienced promoter Incorporated in 2019, Suvita Real Estate Private Limited is a wholly owned subsidiary of Shapoorji Pallonji Construction Private Limited which is further fully owned by Shapoorji Pallonji and Company Private Limited. SREPL on a standalone basis is not into any day-today operations. The Shapoorji Pallonji group is one of the well established and diversified group in India, having operations in various fields such as construction, real estate, infrastructure, Water, Energy etc, having significant value of land and property holdings.

Weaknesses

Delay in repayment of previous NCD SREPL in October 2020 has issued non-convertible debenture worth Rs.75.00 crore to Blackrock-Asia Pacific Private Credit Opportunities 1 Singapore Pte. Ltd which was due for repayment in September 2023. Further, the company has successfully issued a new NCD, which will be used to repay the existing NCD and creation of DSRA as mentioned in term sheet. Higher Interest burden The company has successfully refinanced the existing NCD. However, the refinancing of the same has happened at a significantly higher coupon rate creating an additional stress on liquidity of the company. Further the current NCD has been issued for a period of shorter period of 15 months, creating an additional repayment obligation in short term.

Rating Sensitivities

Timely coupon payments

All Covenants

Hypothecation of 100% receivables, Development Rights, FSI of the collateral Security, and any other rights and benefits. Minimum Asset Cover of 2.0x at all times. Minimum Free Cash Flow Cover of 2.0x at all times.

Liquidity Position

Poor

The liquidity of the company is marked poor as it had previously defaulted on its NCD repayment obligations. Further, the company has refinanced the same at a higher coupon payment. Going ahead, the group will be monetizing land to repay the current NCD.

Outlook : Not Applicable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Actual)	FY 22 (Actual)
Operating Income	Rs. Cr.	15.50	0.00
PAT	Rs. Cr.	(4.92)	(5.87)
PAT Margin	(%)	(31.75)	0.00
Total Debt/Tangible Net Worth	Times	(9.33)	(12.81)
PBDIT/Interest	Times	0.72	0.64

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

­Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Rating Process and Timeline: https://www.acuite.in/view-rating-criteria-67.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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 08 Jan 2024 Proposed Non Convertible Debentures Long Term 95.00 ACUITE Provisional C (Reaffirmed) Proposed Non Convertible Debentures Long Term 10.00 ACUITE Provisional C (Assigned) 20 Dec 2023 Proposed Non Convertible Debentures Long Term 95.00 ACUITE Provisional C (Assigned)

­

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 INE0E1F07026 Non-Convertible Debentures (NCD) 12 Feb 2024 17.25 07 May 2025 95.00 Simple ACUITE C | Assigned Not Applicable INE0E1F07026 Non-Convertible Debentures (NCD) 12 Feb 2024 17.25 07 May 2025 10.00 Simple ACUITE C | Assigned

­

.

­

Contacts

Mohit Jain Senior Vice President - 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.