Press Release

Press Release

October 17, 2025

MCGN ROADWAYS LIMITED LIABILITY PARTNERSHIP
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	82.00	ACUITE BBB \| Stable \| Reaffirmed	-
Total Outstanding	82.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs.82.00 Cr. bank facilities of MCGN Roadways Limited Liability Partnership (MRLLP). The outlook is ‘Stable’.

Rationale for reaffirmation
The rating reaffirmation reflects the receipt of four annuity payments, of which 3rd and 4th were delayed by 11 days and 5 months respectively and thus the repayment of the debt obligation was funded by its sponsor GNI Infrastructure Private Limited (GIPL), further it continues to derive strength from its sponsors’ experience. Further the company has sufficient balance available in their ESCROW account to service the debt obligation in case of delay in receipt of future annuities without taking support from GIPL. The ratings also consider the presence of a debt service reserve account (DSRA) with waterfall mechanism and adequate liquidity. However, the rating is constrained on account of susceptibility to risk related to delay in receipt of annuity and interest risk.

About the Company

Maharashtra based MCGN Roadways Limited Liability Partnership (MRLLP) is a Special Purpose Vehicle (SPV) which was established in 2020 and is sponsored by GNI Infrastructure Private Limited (GIPL) and Manjeet Cotton Private Limited (MCPL) for construction and widening of existing Beed bypass road part of Aurangabad - Jalna Road, Aurangabad including service road and VUP (Length: 17.90 KM). The present partners of the company are Mr. Harvindersingh Basantsingh Bindra and Mr. Rajendra Singh Rajpal. The project has been awarded by Public Works Department (PWD), Government of Maharashtra (GOM) for concession period of 12 years including a construction period of 2 years on Hybrid Annuity Method (HAM) with 60 per cent construction support and rest 40 per cent in annuity payments to be received during the concession period.

Unsupported Rating

Not Applicable

Analytical Approach

The team has considered the standalone business and financial risk profile of MCGN Roadways Limited Liability Partnership (MRLLP) while arriving at the rating.

Key Rating Drivers

Strengths

Experienced management and established track record of operations.
MCGN Roadways Limited Liability Partnership, established in 2020. The sponsors of firm includes Manjeet Cotton Private Limited and GNI Infrastructure Private Limited (GIPL). The present partners of the company are Mr. Harvindersingh Basantsingh Bindra and Mr. Rajendra Singh Rajpal which are the common directors of GNI Infrastructure Private Limited and Manjeet Cotton Private Limited respectively.
GIPL has more than a decade of experience in the infrastructural construction business and have established a track record for successful project execution of more than ~Rs.400.00 crore. It was started by Mr. Harvinder Singh Bindra, Mr. Mr. Khushbir Singh Bindra, Mr. Narendra Singh Bindra and Mr. Ravinder Singh Bindra. The company is registered as 'A-1' contractor with PWD, GoM. Extensive experience of the promoters has helped the company in establishing and maintaining healthy relations with clients and sanctioning authorities.
MCPL wil be providing the financial support to project undertaken by MRLLP. The company was incorporated in 2005. It was promoted by Mr. Bhupendra Rajpal, Mr. Rajendra Rajpal and Mr. Sanchit Rajpal. The company was constituted to consolidate the existing businesses of the Manjeet Group which have been in operations since 1982. MCPL is engaged in cotton ginning, trading, export and extraction of cotton oil seeds. MCPL has manufacturing units at 18 cities located in the states of Madhya Pradesh, Maharashtra, Karnataka, Telangana, Odisha and Rajasthan. The company has annual ginning & pressing capacity of 64 lacs quintal. Acuité believes the firm will benefit from the experience, established position, technical and financial support of its sponsors.

Benefits derived from an annuity-based revenue model
The project developed by MRLLP is an annuity-based revenue model. Under this model, the PWD, Maharashtra will make bi-annual payment over the concession period to the concessionaire. As a result, the firm does not bear any traffic risk as it recovers whole of the capital cost through annuity receipts. Further, biannual operational & maintenance expense along interest cost reimbursement to the extent of bank rate + 3 per cent will be given to the concessionaire during the concession phase. The firm has successfully completed the construction of the road project on time (after getting extension from PWD due to covid-19 pandemic) and has also received all the milestone payments from the authority i.e. PWD Maharashtra as per stipulated timelines mentioned in the concession agreement. Furthermore, the firm has received the Provisional COD certificate and are yet to receive the Final COD certificate.
The firm has received four of its due annuities till date. There was a delay of five months in receipt of first annuity, while the second annuity was received ten days in advance and furhter there was delay in of 11 days and 5 months in receipt of third and fourth annuity. Acuite believes timely receipt of annuities shall remain a key rating monitorable.

Presence of waterfall mechanism in escrow account and maintenance of DSRA
MRLLP has escrow mechanism through which cash flows from Authority is routed and used for payment as per the defined payment waterfal. Only surplus cash flow after meeting operating expense, debt servicing obligation, and provision for major maintenance expense, can be utilised as per borrower’s discretion during the concession period. The average debt service coverage ratio (DSCR) is expected to remain at ~1.59 times during the loan tenor. Any mismatch in cash flows arising out of mismatch in receipt of annuity and debt repayment is expected to be met through support from GIPL. The firm also has to maintain a DSRA account equivalent to six months interest and one principal repayment. The firm has already maintained DSRA account with balance of Rs.7.55 Cr. as on September 30, 2025.

Weaknesses

Susceptibility to risk related to delay in receipt of annuity and interest risk
The project developed by MRLLP is an annuity-based revenue model in which the PWD, Maharashtra wil make annuity payments over the concession period to the concessionaire. As per the concession agreement, the firm is expected to receive a semi-annual annuity over the concession period as per CA. Any delay in timely receipt of the annuity payments could adversely impact debt-servicing ability of the firm. However, such risks are mitigated to some extent as the concession authority is a department of Government of Maharashtra.

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)

MRLLP maintained Debt Service Reserve Account (DSRA) equivalent to six months interest and one principal repayment along with the ESCROW waterfall mechanism.

Stress case Scenario
Acuite believes that, given the presence of ESCROW mechanism and DSRA along with shortfall undertaking given by sponsors, MRLLP will be able to service its debt on time, even in a stress scenario.

Rating Sensitivities

Timely receipt of annuity payments from the principal authority

Liquidity Position

Adequate

The firm has received 60 percent of project cost as construction support during the construction period from PWD, GoM and rest shal be received as annuity payments during the concession period as per the concessionaire agreement. The firm has started to receive annuity payments and has received 4 annuity payments til date. Acuité expects the liquidity of the firm to remain adequate backed by consistent support from the authority in terms of annuity payments and DSRA maintained by the firm equivalent to six months interest and one principal repayment. The liquidity is also likely to remain adequate in view of the financial support receivable by the firm from its sponsors.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	19.63	76.33
PAT	Rs. Cr.	0.21	1.90
PAT Margin	(%)	1.08	2.48
Total Debt/Tangible Net Worth	Times	0.90	1.53
PBDIT/Interest	Times	1.03	1.23

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

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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
19 Jul 2024	Term Loan	Long Term	82.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
25 Apr 2023	Term Loan	Long Term	82.00	ACUITE BBB- \| Positive (Reaffirmed)
01 Mar 2022	Term Loan	Long Term	82.00	ACUITE BBB- \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
Indian Bank	Not avl. / Not appl.	Term Loan	17 Jul 2021	Not avl. / Not appl.	17 Jul 2031	72.00	Simple	ACUITE BBB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

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.

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