Press Release October 01, 2025 AVIGNA HOUSING PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	325.00	ACUITE BB | Stable | Assigned	-
Total Outstanding	325.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned the long-term rating of ‘ACUITE BB’ (read as ACUITE double B) on the Rs.325.00 Cr. bank facilities of AVIGNA HOUSING PRIVATE LIMITED (AHPL). The outlook is 'Stable'.   Rationale for rating assigned The rating assigned reflects extensive management experience of around two decades in the real estate services especially in land acquisition, plotting and leasing of warehouses. The rating further considers the co-obligor structure ringfenced to acquisition and unlocking value of project assets of the security providers and tied up of sale agreements with the prospective buyers of the land. Further, the free land holding of over 200 Acres at Avigna group further expected to support the liquidity. However, the rating is constrained on account of tightly matched cash outflows with inflows from rentals and land sale over the tenure of the debt. Further, the cash flows likely to remain susceptible to cyclicality in the real estate sector.

About Company

Incorporated in 2012, Avigna Housing Private Limited (AHPL) is a part of Tamil nadu based Avigna Group. The company is engaged in sale, plotting of land and construction of vilas and Apartments. The directors include Mr. Shivagnanam Rajasekaran, Mr. Rajasekaran Naveen Manimarra.

About the Group

­The Avigna Group includes entities such as Avigna Housing Private Limited (AHPL), Avigna Jeya Private Limited (AJPL), Avigna Amaira Private Limited (AAPL), and Avigna Parks Private Limited (APPL), which are actively engaged in real estate services. Their operations span land plotting, sale of residential plots, construction of villas and apartments, and leasing of warehousing infrastructure.

Unsupported Rating

­­­­­­­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has consolidated the standalone business and financial risk profile of Avigna Housing Private Limited (AHPL), Avigna Jeya Private Limited (AJPL), Avigna Amaira Private Limited (AAPL), Avigna Parks Private Limited (APPL), together referred to as Avigna Group (AG) to arrive at the rating. The consolidation is on account of common management, co-obligor structure with pledge of common project assets.

Key Rating Drivers

Strengths

Extensive experience of the management The Avigna group is led by Mr. S. Rajasekaran and Mr. Naveen Manimaran, supported by a team with relevant industry experience. Mr. Rajasekaran has been active in land acquisition across Bengaluru, Hosur, and Chennai since 2006, and the promoters bring nearly two decades of experience in real estate services. Their background spans land plotting, sales, and warehouse leasing, which has helped the company maintain steady operations and build long-term relationships with customers. Acuité expects the company to continue benefiting from its established presence, recurring business from key clients, and the growing demand for organized warehousing and plotted land developments.   Escrow mechanism and co-obligor structure The facility availed by AG is structured with a co-obligor arrangement, under which all security providers are jointly and severally liable for the full investment amount, including coupon and IRR. Project-level cash flows are routed through an escrow mechanism, ensuring payments are made in accordance with the defined repayment schedule. In addition, each security provider has extended a corporate guarantee covering the entire investment, and AG’s promoters have provided personal guarantees. Acuité believes this structure supports timely servicing of debt obligations over the medium term by prioritising debt repayments over development cost.

Weaknesses

Tightly match cash flows with inflows from rentals and land sale The group’s cash flows are dependent on income from the sale of plotted land, which tends to be uneven across months and quarters. Unlike lease rentals from warehousing assets that provide stable inflows, land sales are transaction-driven and subject to market timing. This variability can impact the debt service coverage ratio (DSCR) in certain periods. While higher inflows in select quarters may offset shortfalls, the reliance on non-recurring income introduces a degree of uncertainty in cash flow predictability. However, the risk is mitigated to an extent as AG has agreements in place with the prospective buyers for some of the project assets with agreed sales consideration. Acuite believes, the timely sale and augmentation of expected cash flows from plotted land parcels would remain a key monitorable.  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 Karnataka and Tamil Nadu which keeps the group 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 sale and augmentation of adequate cash flows from the proejct assets Any sharp decline in cash flow resulting in cash flow mismatches due to delays in sale of project assets.

All Covenants

­ Creation and Perfection of security within 3 days of disbursement of encumbered Project Assets and within 7 days of acquisition in respect of lands acquired post disbursement Completion of land acquisition of MWC-2, land and Thally road Plotted land on or before 3 months from the disbursement Completion of land acquisition of DHL Warehouse Box on or before 4 months from the disbursement MWC-1 plotted RERA approvals within 2 months from the disbursement Kelamangalam plotted sanction approvals RERA approval on or before 5 months from the disbursement 6. Kelamangalam plotted and MWC-1 plotted launch on or before 6 months from the disbursement Thally Road Plotted project launch within 9 months from the date of disbursement.

Liquidity Position

Adequate

The company’s liquidity position is expected to remain adequate to support debt servicing in the near-to-medium term on account of presence of escrow accounts to ensure timely repayment. Further, the free land holding of over 200 Acres at Avigna group level further expected to support the liquidity in time of contingencies. However, timely sale and augmentation of adequate cash flows from the proejct assets will be a key rating sensitivity factor.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	3.48	2.74
PAT	Rs. Cr.	(0.26)	0.09
PAT Margin	(%)	(7.46)	3.23
Total Debt/Tangible Net Worth	Times	13.69	11.02
PBDIT/Interest	Times	1.49	1.43

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

­None

Any Other Information

­None

Applicable Criteria

• 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 • Service Sector: https://www.acuite.in/view-rating-criteria-50.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. 325.00 Simple ACUITE BB | Stable | Assigned

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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr. No Name of the company 1 Avigna Housing Private Limited 2 Avigna Jeya Private Limited 3 Avigna Amaira Private Limited 4 Avigna Parks Private Limited

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Amay Gupta 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.