Press Release October 01, 2026 AVIGNA HOUSING PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	325.00	0.00	ACUITE BB | Stable | Reaffirmed	-	SEBI
Total Outstanding	325.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

­Acuite has reaffirmed the long-term rating of ‘ACUITE BB’ (read as ACUITE double B) on the Rs.325.00 Cr. Non Convertible Debentures of AVIGNA HOUSING PRIVATE LIMITED (AHPL). The outlook is 'Stable'. Rationale for rating reaffirmed The rating reaffirmation factors in the moderation in project execution and asset-monetisation timelines, resulting in continued dependence on timely inflows from rentals and land sales. The rating also remains constrained by the tightly matched cash flows and the group’s exposure to geographical concentration, regulatory risks and cyclicality inherent in the real estate sector. However, the rating continues to reflect the promoters’ extensive industry experience, stable rental inflows from the fully leased Kochi warehousing portfolio and the structured NCD arrangement supported by the co-obligor and escrow mechanisms.

About the 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), Avigna Bhaaskara Private Limited, Avigna Nivaasa Private Limited, Avigna Prithvi Private Limited, Avigna Siddhi Private Limited, Avigna Sukrti Private Limited, Avigna Sundhara Private Limited, Avigna Vaibava Private Limited, 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 considered the consolidated financials of Avigna Housing Private Limited (AHPL) (Which includes it subsidiaries namely: Avigna Bhaaskara Private Limited, Avigna Nivaasa Private Limited, Avigna Prithvi Private Limited, Avigna Siddhi Private Limited, Avigna Sukrti Private Limited, Avigna Sundhara Private Limited, Avigna Vaibava Private Limited- Floated for MWC-2), and the standalone financials of 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. This is due to the common promoters and Co-obligor structure in the debt availed.

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 the promoters’ experience and established relationships with landowners, customers, tenants, other stakeholders and the growing demand for organized warehousing and plotted land developments.    Escrow mechanism and co-obligor structure The NCD facility is supported by a co-obligor structure comprising the issuer, promoters and identified security providers. The transaction is backed by a first, exclusive and senior charge over the identified project assets, pledge of 100% equity shares of the issuer and security providers, corporate guarantees from the security providers, personal guarantees from the promoters and cross-collateralisation of the project assets, share pledges and guarantees. Further, cash flows from the identified project assets are required to be routed through designated escrow accounts, with excess or surplus project cash flows and proceeds from asset monetisation being applied towards repayment of the NCDs in accordance with the transaction documents. The structure also includes a corporate guarantee from Avigna Private Limited (promoter owned company) as an additional credit comfort. Acuité believes that the escrow mechanism, common security pool and co-obligor structure provide structural support to debt servicing. However, the effectiveness of the structure remains dependent on timely generation of project cash flows, completion of security perfection and monetisation of the identified assets.

Weaknesses

Delays in project execution and continued dependence on timely asset monetisation The NCD proceeds were envisaged to be utilised towards the closure of existing borrowings and the acquisition and development of identified project assets. As on August 31, 2026, the group had utilised Rs. 286.06 Cr. out of the total NCD proceeds of Rs. 325 Cr., comprising Rs. 115.78 Cr. towards closure of existing borrowings, Rs. 139.94 Cr. towards MWC-2 land acquisition, Rs. 18.61 Cr. towards Thally Road and Rs. 11.73 Cr. towards the DHL-Kelamangalam land parcel, while the balance Rs. 38.94 Cr. remained unutilised. During the period under review, the group completed the incorporation of the identified MWC-2 land-owning SPVs and made progress in land aggregation across the projects. However, the launch of MWC-1 was delayed from the originally stipulated timeline on account of delays in obtaining the requisite approvals. Further, the balance acquisition and launch of the Thally Road project and the proposed monetisation of the identified DHL land parcel remain pending. While the Kochi warehousing portfolio is fully operational and provides stable rental inflows, timely completion of the proposed monetisation of the Kochi warehouse and MWC-2 land remains critical for meeting the scheduled NCD obligations. Acuité will continue to monitor the completion of the pending land acquisitions, receipt of project approvals, commencement of sales and timely monetisation of the identified project assets.   Tightly match cash flows with inflows from rentals and land sale The group’s debt-servicing ability remains dependent on the timely receipt of cash flows from lease rentals, sale of plotted land and monetisation of identified project assets. While the fully leased Kochi warehousing portfolio provides relatively stable rental inflows, collections from plotted-land sales are transaction-driven and may remain uneven across months and quarters, depending on project approvals, launch timelines, customer demand, sales velocity and collection efficiency. Further, a sizeable portion of the projected NCD repayment is linked to the proposed monetisation of MWC-2 land, the Kochi warehousing asset and the identified DHL land parcel. Although the group has entered into or is progressing discussions and transaction documentation with prospective buyers for certain assets, the related inflows remain subject to completion of the applicable conditions and transaction closure. Consequently, any delay in project sales or asset monetisation could result in a mismatch between the group’s cash inflows and scheduled NCD obligations, including coupon, redemption premium and principal repayments. Acuité believes that timely achievement of plotted-land sales, receipt of customer collections and completion of the proposed asset-monetisation transactions will remain key rating 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

Potential triggers (individual or collective) for an upward rating action:

Timely sale and augmentation of adequate cash flows from the project assets Timely achievement of plotted-land sales, receipt of customer collections and completion of the proposed asset-monetisation transactions Improvement in overall cash flow position with average DSCR above 2.00 times on a sustained basis

Potential triggers (individual or collective) for a downward rating action:

Any sharp decline in cash flow resulting in cash flow mismatches due to delays in sale of project assets DSCR falling below 1.10 times consistently

All Covenants

No security, in any form, shall be provided by the Security Providers or the Issuer to any other party/lender. No further debt, in any form, shall be raised by the Security Providers or the Issuer without the Investor's consent. A subordination deed, satisfactory to the Investor, shall be executed for all related-party and unsecured debt. No project asset shall be sold below the floor price specified in the Business Plan without the Investor's consent. The floor price for the projects will be mutually agreed/discussed. Security cover shall be maintained at a minimum of 2.25x the accrued exposure at all times. If the security cover falls below 2.0x, additional security shall be provided within 60 days. The Investor may test the security cover at any time through an external valuer of the Investor's choice, at the Obligor's cost. No other debt (other than this debenture) or financial liability shall be incurred except as explicitly disclosed and agreed. No transactions with promoters or related parties shall be undertaken except as explicitly disclosed and agreed. No dividend or any direct or indirect payment shall be made to promoters or related parties, except as explicitly disclosed and agreed. All cash flows shall be routed through an escrow account, with monitoring of all construction expenses through an escrow mechanism. Sponsors shall not divest any stake in the Obligors beyond what is agreed in the Business Plan until the Investor debt is fully repaid. Other representations and warranties, covenants (including negative undertakings, if any), and events of default customary to a transaction similar in nature to the Proposed Transaction shall be provided by the Obligor to the satisfaction of the Investor. The Issuer shall amend/modify its constitutional documents if required by the Investor. The Issuer shall amend its Articles of Association to incorporate the rights of the Investor as mutually agreed in accordance with the transaction documents.

Liquidity Position

Adequate

The company’s liquidity position is expected to remain adequate marked by adequate net cash accruals of Rs.45.4 Cr in FY26(Prov.) as against repayment debt obligation of Rs.5.20 Cr during the same period. Further the cash accruals are expected to be at ~Rs.295 Cr in FY27 as against  debt obligation of ~Rs.55.2 Cr. and for FY28 the cash accruals are expected to be at ~Rs.197 Cr. against repayment debt obligation of ~Rs.195 Cr. during the same period. Additionally, debt servicing is also supported by presence of escrow accounts to ensure timely repayment of the obligation. Further, the free land holding of over 50 Acres at Avigna group level further expected to support the liquidity in time of contingencies. In addition, the liquidity is supported by an average DSCR of ~1.60 times during the tenure of the loan. The cash and bank balance of the company stood at Rs.0.45 Cr. in FY26 (Prov.). However, timely sale and augmentation of adequate cash flows from the project assets will be a key rating sensitivity factor.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	12.33	3.48
PAT	Rs. Cr.	(15.45)	(0.28)
PAT Margin	(%)	(125.24)	(7.92)
Total Debt/Tangible Net Worth	Times	(99.32)	13.59
PBDIT/Interest	Times	0.57	1.49

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

­Not Applicable

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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 01 Oct 2025 Proposed Non Convertible Debentures Long Term 325.00 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 5 Avigna Bhaaskara Private Limited 6 Avigna Nivaasa Private Limited 7 Avigna Prithvi Private Limited 8 Avigna Siddhi Private Limited 9 Avigna Sukrti Private Limited 10 Avigna Sundhara Private Limited 11 Avigna Vaibava Private Limited

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Amay Gupta Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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