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
Acuité has reaffirmed its long term rating of ‘ACUITE D’ (read as ACUITE D) on Non Convertible Debentures (NCDs) issue of Rs.364.00 Cr. of Lokhandwala Kataria Construction Private Limited (LKCPL).
Acuité has assigned its long-term rating of ‘ACUITE C’ (read as ACUITE C) on the Proposed Non Convertible Debentures (NCDs) of Rs.160.00 Cr. of Lokhandwala Kataria Construction Private Limited (LKCPL).
Acuité has withdrawn the long-term rating on the Rs.75.00 Cr. Non-Convertible Debentures facilities of Lokhandwala Kataria Construction Private Limited (LKCPL) without assigning any rating as the instrument is fully repaid. The withdrawal is on account of written confirmation received from the trustee. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.
Rationale for rating
The rating factors the continued delays in the interest servicing of the existing NCDs owing to cashflow mismatches in Project Minerva. The delays are as recent as in the month of March and April 2026, confirmation received from the debenture trustee. Further, the rating on proposed NCD is also constrained on account of the ongoing liquidity issues in the same project.
About the Company
Incorporated in 1998, Mumbai based LKCPL is owned by the Lokhandwala family, Mr. Mohammed A Lokhandwala and Mr. Aliasgar Lokhandwala. The company is currently developing a project by the name of “Minerva” in Mahalaxmi region of Mumbai for the construction of 10 rehabilitation buildings, a school, a maternity/municipal clinic, a welfare centre, a Balwadi and a saleable building 362 apartments. The project began in May 2011.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profiles of the LKCPL to arrive at this rating.
Key Rating Drivers
Strengths
Experienced management and long track record of operations
LKCPL is promoted by Mr. Mohammed A Lokhandwala and Mr. Aliasgar Lokhandwala who are all seasoned industry veterans managing the day to day operations of the company. The promoters of the company have amassed more than two decades of experience in the real estate industry via their association with the group companies. Further, the company has a track record of operations of more than two decades in the aforementioned line of business. The vast experience of the management, coupled with the long track of operations of the company has enabled LKCPL to execute numerous big projects in the region of Mumbai as well as overseas.
Weaknesses
Delay in debt servicing
There are continued delays in the servicing of the NCDs, as recent in the month of March and April 2026, as confirmed by the debenture trustee.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Timely servicing of debt obligations
Potential triggers (individual or collective) for a downward rating action:
Continued delays in servicing of debt (including proposed debt)
All Covenants
Covenants on the proposed NCDs of Rs.160 Cr:
1) Sales milestones and minimum sales price for Project Minerva. In case of any sales below the agreed minimum average sales price and if the average price achieved is below the underwritten numbers / agreed Business Plan, Obligor(s) to infuse equity equivalent to the difference in sale proceeds.
2) Covenant to take consent of the Investor for any new registration of sale in Project Minerva
3) Receivable milestones to be mutually decided in the Transaction Documents as per the agreed business plan
4) Negative covenant for any disposal of Project Minerva or any cashflows from Project Minerva to be used for repayment of any other debt or payment of dividend
5) Obligor(s) to share a detailed business plan with to the satisfaction of Investor(s).
6) Financial covenants to be included in the Transaction Documents as required by Investor(s) as is customary for such transactions.
7) Information covenants to be included in the Transaction Documents as required by Investor(s) as is customary for such transactions.
8) Affirmative covenants and negative covenants to be included in the Transaction Documents as is customary for such transactions.
9) Covenant to take consent of the Investor for any material change in plans and designs of Project Minerva
Additional covenants shall be included in the Transaction Documents as mutually agreed based on the completion of due diligence.
Liquidity Position
Stretched
The liquidity of the company is marked stretched due to instances of delays/default in servicing debt obligations on the NCD's.
Outlook: Not Applicable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
296.28
222.03
PAT
Rs. Cr.
(315.85)
(278.22)
PAT Margin
(%)
(106.60)
(125.30)
Total Debt/Tangible Net Worth
Times
(0.96)
(1.44)
PBDIT/Interest
Times
(0.14)
(0.01)
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
