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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 150.00 | ACUITE BB- | Stable | Assigned | - |
| Total Outstanding | 150.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has assigned long term rating of 'ACUITE BB-' (read as ACUITE double B minus) on the Rs. 150 Cr. bank facilities of Dion Riverside Township Private Limited. The outlook is 'Stable'.
Rationale for rating The rating takes into cognizance experienced management in the real estate sector, financial flexibility to infuse funds as and when required to support the business. However, the strengths are partly offset by risks associated at nascent stage of implementation and cost overrun of the project and timely execution of the project. |
| About the Company |
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Orissa Based Dion Riverside Township Private Limited (DRTPL) was incorporated in 2022. It Is an special purpose vehicle (SPV) floated by SCS Constructions India Private Limited and Dion Infratech Private Limited. The Company is expected to undertake construction and development of residential and commercial real estate projects. The Directors of The Company Are Mr. Suresh Sahoo Chandra and Mr. Manoj Kumar Sahoo.
The company has undertaken project to construct residential apartments for Middle Income Groups (MIG) and Economically Weaker Sections (EWS), retail mall cum hotel and multi speciality hospital, with a project cost of Rs. 669.89 Cr. (project cost of the residential portion only), the means of finance comprises of promoters contribution of Rs. 70.72 Cr, customer advances of Rs. 449.17 Cr. and term loan of Rs. 150 Cr. sanctioned with State Bank of India. The completion date of project is estimated to be March 2030. |
| About the Group |
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SCS Constructions India Private Limited (SCIPL)
Incorporated in 2016, SCS Constructions India Private Limited (SCIPL) is primarily engaged in the construction of roads, bridges and irrigation projects in Odisha. The major clientele of the company are into Irrigation and Rural Works including R & B, IDCO and Odisha Bridge & Construction Corporation Limited (OBCC) of Odisha State Government and NH Division, BBSR & Mahanadi Coal Fields of Central Government. The present directors are Mr. Suresh Sahoo Chandra and Ms. Smruti Smaranika Sahoo. The unexecuted orderbook position of the company as on September 2025 is about Rs. 230 Cr. Dion Infratech Private Limited (DIPL) Orissa Based Dion Infratech Private Limited incorporated in 2010. The company is engaged in real estate along with quarrying, mining, and crushing of stones and minerals. The company also has plans to operate Ready Mix Concrete plant for captive use. The directors of the company Are Mr. Manoj Kumar Sahoo, Mr. Sabyasachi Mishra, And Mr. Dibyajyoti Mishra. |
| Unsupported Rating |
| ACUITE B+/Stable |
| Analytical Approach |
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Acuité has considered the standalone business and financial risk profile of Dion Riverside Township Private Limited and notched up the standalone rating by factoring in the financial and operational linkages with SCS Constructions India Private Limited (rated at ACUITE BBB-/Stable/A3). The shareholding of SCIPL is 30% which is expected to increase to 50% by the end of FY 26. Corporate guarantees has been provided by SCS Constructions India Private Limited.
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| Key Rating Drivers |
| Strengths |
| Benefits derived from the Experienced promoters
The operations are managed by Mr. Suresh Sahoo Chandra and Mr. Manoj Kumar Sahoo. Mr. Suresh has more than 32 years of experience in the field of construction and has successfully completed various civil projects under Odisha Govt., i.e. PWD, NABARD, RWD among others. Mr Manoj has more than 12 years of experience in stone crushing, construction, real estate activities, as well as more than 5 years’ experience in automobile dealership. Acuite believes that the benefits derived from the experienced management will help the company in successful execution of the project. Low Funding risk and upfront equity infusion There is low funding risk associated with the project as State Bank of India sanctioned the entire loan of Rs. 150 Cr. for construction of the project. There will be moratorium period of 58 months starting from SCOD and repayment will start from June 2030. The promoters are required to infuse upfront 60% of promoter’s margin and paid up capital of Rs. 22 Cr. as part of the promoter's margin to be brought before the disbursement of the loan. The promoters have already infused Rs. 45.12 Cr. as unsecured loans into the company till September 2025. Acuite believes that tying up of funds with upfront equity infusion will mitigate the risk to some extent from lender’s perspective. In addition to that, the company is required to open escrow account wherein all the inflows & outflows will be done, maintain DSRA for 3 months interest and instalment to be created in the later stages of construction. |
| Weaknesses |
| Risks related to execution of the ongoing project
The company has a residential cum commercial project plan with a mall, hospital and hotel to be set up as part of it. The company is engaged in the construction of a residential project spread across 12.18 acre of land with 6 residential towers. The project is expected to be completed by end of FY2030. Further, the company is constructing the hotel and hospital expected to start construction from Q2FY 27 . There is a risk of implementation of project in a time bound manner as any external factor such as weather, natural calamity or delay in procurement of equipment or delay in civil construction or any other unforeseen circumstances can impact the completion timeline. Since the company is in initial stage of construction, there are risks associated to time and cost overrun. |
| 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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The company will maintain a Debt Service Reserve Account (DSRA) equivalent 3 months instalment and interest debt servicing obligation along with the Escrow mechanism.
Stress Case scenario Acuite believes that, the company will maintain DSRA mechanism equivalent to 3 months instalment and interest debt servicing obligation, the company will be able to service its debt on time, even in a stress scenario. |
| Rating Sensitivities |
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Timely completion of the project Any cost or time overrun Delay in receipt of customer advances |
| Liquidity Position |
| Stretched |
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The liquidity is stretched as the project is in the initial stages and may face mis match of cashflows. Timeliness of receipt of customer advances and bank loan disbursements will remain important to the liquidity of the project. The company is expected to maintain DSRA equivalent to 3 months instalment and interest to be created in the later stages of the project. The liquidity is supported by promoters who have demonstrated flexibility to infuse funds as and when required.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Provisional) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 0.00 | 0.00 |
| PAT | Rs. Cr. | (0.05) | 0.00 |
| PAT Margin | (%) | 0.00 | 0.00 |
| Total Debt/Tangible Net Worth | Times | 0.00 | 0.00 |
| PBDIT/Interest | Times | (181.58) | (25.19) |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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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