Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Non Convertible Debentures (NCD) 600.00 ACUITE B+ | Stable | Upgraded -
Non Convertible Debentures (NCD) 25.00 Not Applicable | Withdrawn -
Total Outstanding 600.00 - -
Total Withdrawn 25.00 - -
 
Rating Rationale

Acuite has upgraded the long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE B’ (read as ACUITE B) on the Rs.600.00 Cr. Non-Convertible Debentures of Prateek Realtors India Private Limited. The outlook is ‘Stable’.

Further, Acuite has withdrawn its long term rating on the Proposed Non Convertible Debentures of Rs.25.00 Cr. without assigning any rating, as it is a proposed facility of Prateek Realtors India Private Limited. The rating has been withdrawn on account of the request received from the issuer, as per Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument.

Rationale for upgrade
The rating takes into account the sales progress in the first two phases of Prateek Grand City, which have achieved near-full sales with 97% of the inventory sold as on 31st December 2025 and the balance expected to be sold in the next couple of quarters. The rating also factors the construction of Phase III of Prateek Grand City, which is ongoing and is expected to be completed by FY2029. The sales momentum remained healthy, with units sold rising to 470 out of the total 2,316 saleable units as on 31st December 2025, compared with 335 units sold as on 31st December 2024. Additionally, the moderate construction progress, steady customer advance inflows, along with sales performance relative to its debt availed, are likely to support an average DSCR of more than three times during FY2026–2029. The rating further draws comfort from the experienced promoters and long track record of over two decades in the same line of business. However, the strengths are partially offset by the early-stage status of Prateek Grand City Phase III, which exposes demand-related risks and remains susceptible to implementation risks associated with the real estate sector.

About the Company

Delhi based, Prateek Realtors India Private Limited (PRIPL) was incorporated in 2009. It is promoted by Mr. Prashant Kumar Tiwari (& family), who holds 100% of the company directly or through group companies (Prateek Buildtech India Private Limited – 93% and Prashant Kumar Tiwari – 7%). The company is engaged in real estate activities & housing construction and is developing an affordable group housing project, Prateek Grand City, having 40 acres of land area, located at Siddhartha Vihar, Ghaziabad. The current directors of the company are Mr. Prateek Tiwari and Mr. Prashant Kumar Tiwari.
 
Unsupported Rating
­Not applicable
 
Analytical Approach
­Acuite has considered the standalone approach on the business and financial risk profile of Prateek Realtors India Private Limited to arrive at the rating.
 
Key Rating Drivers

Strengths

Experienced Promoters with established track record of operations
The promoter of Prateek Realtors India Private Limited (PRIPL), Mr. Prashant Tiwari, has more than two decades of experience in this line of business. The group has a substantial presence in Noida and Ghaziabad and has delivered six projects in Delhi NCR, such as The Royal Cliff, Prateek Fedora, Prateek Laurel, Prateek Wisteria, Prateek Edifice, and Prateek Stylome. Currently, PRIPL is developing an affordable group housing project: Prateek Grand City, which is a 40-acre integrated township located at Siddhartha Vihar, Ghaziabad. Acuite believes that the business acumen of the promoters is expected to benefit the business risk profile of the company over the medium term.

Healthy sales momentum across phases
Prateek Grand City benefits from healthy sales traction across all phases. Phases I and II have achieved close to full sales, with 4,325 out of 4,508 units sold (95.94%) as on 31st December 2025, leaving a small balance inventory of 183 units. Furthermore, Phase III also shows improving sales momentum, as reflected by units sold increasing to 470 units (20%) as on 31st December 2025, from 335 units (14%) as on 31st December 2025. The company has outstanding receivables in the range of Rs.500 Cr. to Rs.550 Cr. from sold inventory, while receivables from unsold inventory are estimated to be in the range of Rs.3000 Cr. to Rs.3100 Cr., which are expected to be realized over the medium term. The high level of absorption in earlier phases and the gradual strengthening of sales velocity in Phase III support the project’s overall market visibility and cash flow stability.


Weaknesses

­Susceptibility to Real Estate Cyclicality, geographical concentration and regulatory risks
The real estate industry in India is highly fragmented, with most of the real estate developers having a city-specific or region-specific presence. Most of PRIPL’s past and ongoing projects are located in Delhi NCR, which increases its susceptibility to geographical concentration risk. Further, the real estate industry is cyclical in nature of business and subject to price and interest rate risk, among others. Additionally, the industry is also exposed to regulatory risk, which can impact project execution.

Exposure to Project Execution, Demand and Implementation Risks
Project execution risk persists for Prateek Grand City – Phase III wherein around 91% of the cost is yet to be incurred in the near to medium term, thereby exposing it to execution and implementation risks. Furthermore, demand risk is also associated with Phase III, given the fragmented and unorganized nature of the local real estate market, which heightens competitive pressure. Acuité believes that commanding of better price realization coupled with timely execution and receipt of customer advances will remain a key rating sensitivity over the medium term.

ESG Factors Relevant for Rating
­PRIPL's ESG profile is shaped by its role in developing  residential and commercial driven real estate across NCR, with close engagement with employees, homebuyers, and local communities thereby making employee safety, human rights, and community development as key social considerations. Governance-related factors such as board composition, management compensation, business ethics, shareholder rights, and audit controls are also relevant wherein the company is led with active oversight from directors/promoters, reinforcing transparent governance framework as well as ethical business practices that guide its approach to responsible development.  Environmentally, the company focuses on sustainable construction and resource efficiency.  As Prateek Grand City advances across phases, continued adherence to regulatory norms, safe project execution remain key ESG Monitorable factors.
 
Rating Sensitivities
  • Timely realization of customer advances pending from sold inventory.
  • Lower than expected sales traction leading to increased dependence on debt.
  • Sharp decline in cash flow due to slackened saleability of the project or delays in project execution.
 
All Covenants
  1. Balance of the Piramal/Apollo debt after payment of INR 225 crores shall be subservient to Tranche I debt and the proposed funding. Piramal/Apollo Debt to have a repayment based on % - collection share. Prateek Grand City Phase III to be mutually agreed between investors, borrower, and Piramal/Apollo.
  2. Piramal/Apollo Debt can be repaid/purchased by Prateek Group from other cash flows not charged with the investor, subject to no dilution/change in rights/security profile of the investor.
  3. No further debt in any form can be raised by the Obligors without Investor
  4. Subordination of any related party debt
  5. Cumulative minimum collection of Rs.500 Cr. from Prateek Grand City Project Phase I and 2 from 1st April 2024 till before March 31, 2026, with quarterly targets.
  6. Other milestones of Phase Ill to be discussed and mutually agreed at the time of preparation and finalization of transaction documents.
  7. No sale below the floor price as set out in the business plan for any of the projects without prior written consent of the investor.
  8. Cash flow cover and security cover of at least 2.25 times the investment amount at all times.
  9. Cash flow cover/Security cover can be tested anytime at the discretion of the investor by an external valuer of the investor's choice at the cost of the obligor.
  10. No transactions with the promoter or related parties except as explicitly disclosed and agreed.
  11. No dividend or any direct or indirect payment to promoters or related parties (except as explicitly disclosed and agreed)
  12. Submission of monthly/quarterly business plan. Construction, approval, and sales milestones to be monitored and met as per the business plan.
  13. All cash flows to be routed through escrow accounts for the projects. Monitoring of all construction expenses through an escrow mechanism.
  14. Sponsor not to divest any stake in the Obligors other than those as agreed in the Business Plan till Investor debt is fully repaid.
 
Liquidity Position
Adequate

The liquidity position of PRIPL is adequate, supported by the presence of an escrow-based payment mechanism for all its projects. The moderate construction progress and customer advance inflows along with sales performance relative to its debt availed, are likely to translate into an average DSCR of more than three times during FY2026–2029. Moreover, any challenges associated with Prateek Grand City Phases - I and II are expected to be mitigated by sufficient cash inflows from Phase III. Acuité expects the liquidity position of the company to remain adequate, backed by healthy collections against its project funding and debt repayment obligations, coupled with stable cash inflows.
 
Outlook: Stable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 322.08 168.43
PAT Rs. Cr. (111.21) (110.35)
PAT Margin (%) (34.53) (65.52)
Total Debt/Tangible Net Worth Times (2.92) (4.49)
PBDIT/Interest Times 0.57 0.24
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
07 Mar 2025 Non-Covertible Debentures (NCD) Long Term 325.00 ACUITE B | Stable (Upgraded from ACUITE C)
Proposed Non Convertible Debentures Long Term 300.00 ACUITE B | Stable (Assigned)
14 Feb 2025 Non-Covertible Debentures (NCD) Long Term 325.00 ACUITE C (Reaffirmed)
15 Feb 2024 Proposed Non Convertible Debentures Long Term 325.00 ACUITE C (Assigned)
31 Jan 2024 Proposed Non Convertible Debentures Long Term 325.00 ACUITE Provisional C (Assigned)
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Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Not Applicable INE0K4K07022 Non-Convertible Debentures (NCD) 28 Mar 2024 19.50 31 Aug 2027 325.00 Simple ACUITE B+ | Stable | Upgraded ( from ACUITE B )
Not Applicable INE0K4K07030 Non-Convertible Debentures (NCD) 28 Mar 2025 20 28 Mar 2029 275.00 Simple ACUITE B+ | Stable | Upgraded ( from ACUITE B )
Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE Not Applicable | Withdrawn
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