Press Release October 05, 2026 AVIGNA JEYA PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	50.00	ACUITE BB | Stable | Reaffirmed	-	RBI
Total Outstanding	0.00	50.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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.50.00 Cr. bank facilities of AVIGNA JEYA PRIVATE LIMITED (AJPL). The outlook is 'Stable'. Rationale for rating  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 2021, Avigna Jeya Private Limited is a part of Tamil Nadu based Avigna Group. The company is engaged in the business of real estate activities with owned or leased property and in the business of constructing multi-dwelling residential buildings. The directors include Mr. Binay Kishore Jha, Mr. Shivagnanam Rajasekaran and Mr. Rajasekaran Naveen Manimarran.

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

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

­

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 Long Term Bank Facility Long Term 50.00 ACUITE BB | Stable (Assigned)

­

­

*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

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below: A. Rating Activity:   Sr. No. Instrument / activity Name Regulator of the instrument 1 Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities) SEBI 2 Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities) MCA 3 Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)1 6 RBI 4 Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)1 SEBI 5 Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)1 RBI 6 Listed Commercial Paper and NCDs with original maturity less than 1 year RBI 7 Unlisted Commercial Paper and NCDs with original maturity less than 1 year RBI 8 Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs 2 RBI 9 External Commercial Borrowings and other similar borrowings RBI 10 Certificates of Deposit RBI 11 a Fixed Deposits raised by NBFCs, HFCs, FIs RBI 11 b Fixed Deposits raised by Banks 7 + 12 Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs MCA 13 Inter Corporate Deposits/Loans extended by Corporates MCA 14 Borrowing programme 3 - 15 Issuer Ratings 4 - 16 Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs) SEBI 17 Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs SEBI 18 Listed Security Receipts 6 RBI 19 Unlisted Security Receipts RBI 20 Independent Credit Evaluation (ICE) RBI 21 Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) 7 + 22 Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities)) SEBI 23 Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities)) MCA 24 Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1 Investor-side Regulator such as IRDAI, PFRDA 5   1 Includes securitisation transactions involving assignee payout, acquirer's payout. 2 Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. 3 The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators. 4 There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. 5 These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included. 6 By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues. 7 To be finalized following a discussion with the regulatory authorities.   B. Other activities:   Sr. No. Activity Name Regulator of the activity 1 Monitoring Agency SEBI 2 Research activities, incidental to rating, such as research for Economy, Industries and Companies 8 Not applicable 8 permitted by SEBI vide SEBI Master Circular for CRAs. Disclosure on instruments / activities and names of regulators: A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference: https://acuite.in/Activities-and-Regulators.html   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.