Press Release July 23, 2026 PRADHAAN CITY K R PURAM PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	120.00	0.00	ACUITE B+ | Stable | Reaffirmed	-	SEBI
Total Outstanding	120.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

­Acuité has reaffirmed its long-term rating of ‘ACUITE B+’ (read as ACUITE B Plus) on the Rs. 120.00 Cr. Non-Convertible Debentures (NCDs) of Pradhaan City K R Puram Private Limited (PCKRPPL). The outlook is ‘Stable’. Rationale for rating reaffirmation The rating reaffirmation reflects the high project implementation, funding and offtake risk for the Pradhaan City KR Puram project as the project is at the nascent stage of construction. Further, the rating considers the susceptibility of the company's operations to geographical concentration, cyclicality inherent in the real estate sector and the regulatory risks associated with project development. However, the rating derives support from the established track record of the developer groups and experienced management.

About the Company

Registered in Bangalore, Pradhaan City K R Puram Private Limited (PCKRPPL) was incorporated in 2025 as a Special Purpose Vehicle (SPV) for the development of the proposed residential project ’Pradhaan City KR Puram’. The company is engaged in development of residential and commercial real estate projects. During the year, the shareholding structure of the company was revised with the induction of Assetz Private Limited as a joint venture partner. Accordingly, the SPV is now jointly held by Assetz Private Limited (51 per cent) and House of Pradhaan LLP (49 per cent). The Directors of the company are Mr. Uduvare Rangaswamy Prabhu, Mr. Sunil Kumar Pareek and Mr. Mahesh Bhauso Yadav.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered standalone business and financial risk profiles of PCKRPPL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of the developer groups with experienced management PCKRPPL is developing a residential project ‘Pradhaan City KR Puram’ through a joint development arrangement between House of Pradhaan LPP and Assetz Private Limited, with Assetz acting as the lead development partner. The promoters of Inspira group have over two decades of experience in residential and commercial real estate development through various projects executed in and around Bengaluru. Further, Assetz Private Limited, established in 2006, is a Bengaluru-based real-estate developer with a strong track record in the premium residential segment, having completed approximately 10 million sq. ft. of residential developments and a sizeable ongoing and upcoming development pipeline. At present, PCKRPPL is undertaking the development of multi-storied residential apartments across ~23 acres under the project ‘Pradhaan City K R Puram', planned to be developed in three phases, with 2 to 3 towers in each phase. Assetz will lead the overall execution of the project, including project planning, statutory approvals, construction, sales and marketing. Acuité believes that the combined experience of the Inspira Group and Assetz Private Limited is expected to support the timely implementation of the proposed project.

Weaknesses

Early stage of the project development The proposed residential project continues to remain at an early stage of development and is currently at the design stage. The Joint development Agreement (JDA) has been executed and the earlier settlement with Sobha Limited has been completed, enabling the revised development structure with Assetz Private Limited as the lead development partner. However, the project is yet to obtain key statutory approvals, including layout plan approval, building plan sanction and registration under RERA. The company expects to obtain the RERA registration by June 2027. Subsequent progress of the project will remain dependent on timely receipt of these approvals and adherence to the planned implementation schedule. The timely receipt of these approvals will be critical for commencement of timely construction and the subsequent execution of the project. Acuité believes that timely receipt of the requisite statutory approvals, including RERA registration, and commencement of construction in line with the envisaged timelines will remain key rating monitorable.   Project execution risk and risks associated with funding availability and demand generation The project is at nascent stage, thus exposed to high project execution risk. The total estimated project cost is ~Rs. 1661 Cr., proposed to be funded through Rs. 120 Cr. of listed Non-Convertible Debentures (NCDs), promoter contribution of Rs. 41.00 Cr and rest through customer advances. Out of the NCD issuance, Rs. 59 Cr. has been raised, while the balance Rs. 61 Cr. is proposed to be raised in line with the project funding requirements. The project is yet to obtain key statutory approvals, including RERA registration. Project implementation risk remains high as construction is yet to commence and timely receipt of statutory approvals will be critical for execution of the project. Funding risk remains high given the project’s significant dependence on customer advances, which are yet to be received as the project has not been launched. Although Rs. 59 Cr. has been raised through the proposed Rs. 120 Cr. NCD issuance, which is utilised for settlement with Sobha Limited. Timely mobilisation of the balance funding, including customer advances and the remaining NCD proceeds, will remain critical for implementation of the project. Demand risk also remains high considering that the project is yet to be launched, and sales bookings are yet to commence. However, the demand risk is partly mitigated by the project’s location in the K R Puram area of Bengaluru with connectivity to the metro network and outer ring road. Acuité believes that timely project implementation, mobilisation of funding and achievement of the envisaged sales velocity 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 primarily located in and around Bengaluru, exposing the company to geographical concentration risk. Further, the real estate industry in India is highly fragmented. with most developers, having a city specific or region-specific presence. The industry is cyclical in nature and remains susceptible to changes in property prices, interest rate movements and overall economic conditions, which may impact demand for residential projects. The company’s track record, quality of construction and delivery timelines will be crucial aspects that home buyers will consider in their purchase decisions. 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. Accordingly, 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 commencement and completion of the project without any time and cost overruns Achievement of >15% collection by March 2028, improving the cash flow visibility and reducing the execution risk.

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 project execution or industry slowdown Delay in construction of the said project with cost overruns Delay in realization of customer advances from sold and unsold inventory impacting the overall cash flows. Deterioration in debt servicing metrics with average DSCR falling below 1.20 times.

All Covenants

Developer to obtain all required statutory approvals and Rera Registration Comply with ESG standard as prescribed by investor Appointment of DM All Receipts from sales of units would flow into hundred percent collection account (escrow account) which would be operated & controlled by investor The Gearing Ratio shall at all times be less than or equal to 50% till the relevant Mandatory Redemption Date.

Liquidity Position

Adequate

The company's liquidity profile is expected to remain supported by promoter contribution and customer advances towards project implementation. The company has availed NCD funding of Rs.59 crore, which is structured with a bullet repayment due in September 2029. Additionally, the NCD structure provides for a 12-month moratorium on interest servicing, with the first quarterly interest payment falling due in November 2026. The company reported cash and bank balances of Rs.2.65 crore as on March 31, 2026. Based on management projections, the company is expected to generate a net cash surplus of ~Rs.22.3 crore in FY2027, which is expected to be sufficient to meet its debt servicing obligations of around Rs.8.5 crore during the year. Further, in FY2028, the company is expected to generate a cash surplus of ~Rs.100 crore against debt servicing obligations of about Rs.17.2 crore. Liquidity is further supported by an unconditional corporate guarantee from Inspira Builders LLP and personal guarantees extended by Mr. Uduvare Rangaswamy Prabhu and Mrs. Jayaram Deepika.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	0.00	0.00
PAT	Rs. Cr.	(0.06)	(0.01)
PAT Margin	(%)	0.00	0.00
Total Debt/Tangible Net Worth	Times	(1805.93)	5.59
PBDIT/Interest	Times	(11040.00)	0.00

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 • 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

­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 23 Jul 2025 Proposed Non Convertible Debentures Long Term 120.00 ACUITE B+ | Stable (Assigned)

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Amay Gupta Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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