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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 51.00 | ACUITE BB+ | Stable | Assigned | - |
| Non Convertible Debentures (NCD) | 29.00 | ACUITE BB+ | Stable | Reaffirmed | - |
| Total Outstanding | 80.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed its long-term rating of ‘ACUITE BB+’ (read as ACUITE Double B plus) on the Rs.29.00 Cr. Non-Convertible Debentures of Ecobox Industrials Asset II Private Limited. The outlook remains 'Stable'.
Acuité has assigned the long-term rating of 'ACUITE BB+' (read as ACUITE Double B plus) on Rs.51.00 Cr. Non-Convertible Debentures of Ecobox Industrials Asset II Private Limited. The outlook is 'Stable'. Rationale for Rating The rating fcators in the strong parent support from Rava Partners which is a Singapore based fund house. Rava Partners has committed more than USD $2 billion to real assets businesses spanning the warehousing, logistics, and supply chain sectors. Ecobox group of entities is one such warehousing venture of Rava Partners. However, execution risk of proposed acquisition constrains the rating. Additionally, Acuité takes note of the change in acquisition plan of Ecobox Group. The Group earlier planned to acquire 3 operational industrial warehousing assets housed under 4 different existing SPVs from a seller. Under the revised plan, the Group shall acquire 2 operational industrial warehousing assets housed under 3 different existing SPVs from the seller. Accordingly, the revised acquisition cost has been factored in along with its impact on the financial profile and debt servicing ability of the group. The two warehousing assets are located at Pune, Maharashtra and Tirpuati, Andhra Pradesh. Given the proposed acquisition is currently at nascent stage, there remains high degree of funding/execution risk with respect to infusion of equity from the Ecobox Group and debt tie-up from the proposed lender. Further, Acuité believes that the timely completion of the proposed acquisition without any material change in the capital structure and committed equity and debt will be a key rating monitorable. |
| About the Company |
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Ecobox Industrials Asset II Private Limited (EIAPL II) incorporated in August, 2024, is a new investment ventureof Rava Partners. A special purpose vehicle formed for the purpose of acquiring a warehousing asset at Sricity, Andhra Pradesh. The company is currently managed by Mr. Abhay Goyal and Mr. Ashish Shah.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
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Acuité has considered the standalone business and financial risk profiles of Ecobox Industrials Asset II Private Limited to arrive at this rating.
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| Key Rating Drivers |
| Strengths |
| Strong Parentage:
EIAPL – II is a part of Ecobox group of entities, which is promoted by Singapore based fund house Rava Partners.Rava Partners builds real asset platforms in growth sectors of Asia’s economy such as education, logistics / industrial, life sciences / healthcare, digital infrastructure and other specialized asset classes. Since launching its real assets business, Rava Partners has committed more than USD $2 billion to real assets businesses spanning the warehousing, logistics, and supply chain sectors. Rava Partners was established by Hillhouse Investment together with senior management of Rava. Hillhouse Investment (“Hillhouse”) is a global alternative investment manager with a range of investment strategies that span public equities, private equity (across buyout, venture capital and growth strategies), private credit and real assets. The firm manages capital for global institutions, including nonprofit foundations, endowments, and pensions. Based in Singapore, the global investment firm has an international team working in offices in Mumbai, London, New York, Sydney, Hong Kong, Beijing, Shanghai, and Amsterdam. Ecobox group is in the process of acquiring 2 operational industrial warehousing assets, housed under 3 different existing SPVs, from a seller. The total asset size is ~2.22 mn sq ft. The existing SPVs will be acquired by way of a share purchase agreement. For this, the parent group has created 3 new SPVs which will buy the shareholding of these existing SPVs from the seller. EIAPL-II is one of the entities of this transaction, which will acquire 100 percent shareholding in one of the seller entitiy from its existing promoters. The warehousing asset is located at Sricity, Andhra Pradesh. Adequacy of operational cashflow from warehouses to be acquired: Ecobox group is in the process of acquiring 2 operational industrial warehousing assets, housed under 3 different existing SPVs, from aseller. The 2 warehouses at aconsolidated level are estimated to generate DSCR in the range of 1.20 – 1.32 times. EIAPL – II will be acquiring 100% stake in one of the seller entites which owns the warehousing asset is located at Sricity, Andhra Pradesh. At a standalone level, the DSCR from the asset is estimated to be in the range of 1.28-1.34 times. |
| Weaknesses |
| Exceution Risk:
The proposed transaction i.e.purchase of warehousing asset by EIAPL – II vide share purchase in seller entity is currently under process with infusion of both debt and equity funding pending. The acquisition is estimated to cost around ~Rs. 178.10 Cr. which is to be funded by equity or compulsorily convertible debentures to the tune of Rs. 98.10 Cr. and balance vide issue of listed non-convertible debentures. Further, Acuité believes that the timely completion of the proposed acquisition without any material change in the capital structure and committed equity and debt will be a key rating monitorable. |
| Rating Sensitivities |
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Timely completion of proposed acquisition without any material change in the capital structure and committed equity and debt. Retained occupancy of warehouses that are to be acquired. |
| Liquidity Position |
| Adequate |
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The liquidity position is marked adequate basis the strong parentage of EIAPL-II and expected support from them in case of any exigencies. Further, post completion of proposed acquisition liquidity is estimated to remain adequate marked by sufficient net cash accruals against repayment obligations. At astandalone level for EIAPL -II, the DSCR from the asset is estimated to be in the range of 1.28-1.34 times and at a consolidated level are estimated to generate DSCR in the range of 1.20 - 1.32 times.
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| Outlook: Stable |
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The Outlook is ‘Stable’ driven by strong parentage of the company. The outlook may be revised to 'Positive' in case of timely completion of proposed acquisition without any material change in the capital structure and committed equity and debt. The outlook may be revised to 'Negative' in case of delay in proposed debt or equity funding in the company which would delay the proposed acquisition.
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| Other Factors affecting Rating |
| None. |
| Key Financials : |
| The company is incorporated on August 02, 2024, financial statements for the year are not available. |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable. |
| 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 • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.htm |
| Note on complexity levels of the rated instrument |
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