Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Non Convertible Debentures (NCD) 725.00 0.00 ACUITE B+ | Stable | Assigned - SEBI
Non Convertible Debentures (NCD) 600.00 0.00 ACUITE B+ | Stable | Reaffirmed - SEBI
Total Outstanding 1325.00 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Total Withdrawn 0.00 0.00 - - -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

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

Further, Acuite has assigned ‘ACUITE B+’ (read as ACUITE B plus) on the Rs. 725.00 Cr. Proposed Non-Convertible Debentures of Prateek Realtors India Private Limited. The outlook is ‘Stable’.

Rationale for Rating
The rating takes into account the company’s proposed debt issuance plans for refinancing along with full and final settlement of the existing debt obligations. Additionally, a portion of the funds is expected to support project construction and working capital requirements. The proposed refinancing is expected to elongate the debt repayment tenor vis-à-vis the existing repayment schedule. However, timely execution of the proposed refinancing plan and the resultant impact on the project's debt maturity profile and liquidity position will remain a key monitorable factor.

Furthermore, the rating reflects the near-full sales progress in the first two phases of Prateek Grand City along with ongoing construction progress and steady sales traction in Prateek Grand City Phase III. 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 1.5 times during FY2027–2031. The rating further draws comfort from the experience of promoters and a long track record of over two decades in the same line of business. However, the strengths are constrained by the early-stage status of Prateek Grand City Phase III, which exposes the project to execution, implementation, and demand-related risks. Acuité also notes the company’s susceptibility to real estate cyclicality and regulatory risks.

About the Company

­Delhi based, Prateek Realtors India Private Limited (PRIPL) was incorporated in 2009. The company is engaged in real estate activities and housing construction. Currently, the PRIPL 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. Prasant 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 strong sales traction across all phases. Phases I and II have achieved close to full sales, with 4,413 out of 4,508 units sold (98%) as on 30th June 2026, leaving a small balance inventory of 95 units. Phase III also shows steady improvement in the sales momentum, as reflected by units sold increasing to 495 units (22%) as on 30th June 2026, from 470 units (20%) as on 31st December 2025. 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.

Expected longer debt repayment tenor through proposed debt refinancing
The company proposes to raise debt aggregating upto Rs. 690 Cr. which are expected to be received in two tranches of Rs. 590 Cr. and Rs. 100 Cr. The proceeds are primarily proposed to be utilised towards refinancing the existing debt obligations of Prateek Grand City Phases I, II and III along with full and final settlement of the entire existing debt pertaining to Prateek Grand City Phases I and II. Additionally, a portion of the funds is expected to support project construction and working capital requirements of the project. Moreover, as per the existing repayment schedule, the debt availed for funding Prateek Grand City Phases I, II and III was scheduled to be fully repaid by FY2029. However, the proposed refinancing is expected to provide a longer repayment tenor wherein the repayment timeline for the proposed debt is expected to extend up to FY2031, with principal repayments commencing from FY2029. Acuite notes that execution of the proposed refinancing plan and the resultant impact on the project's debt maturity profile and liquidity position will remain a key monitorable factor.


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, as it is still at an early stage with 495 units sold out of 2,277 units as on 30th June 2026 (22% of the inventory) and the remaining 78% is yet to be sold. However, this risk is partly offset by Phases - I and II, which are nearing completion with 98% of the inventory already sold as on 30th June 2026, and the balance expected to be sold in the next couple of quarters. 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. Further, the commanding of better price realization will remain a key sensitivity in the near to medium term, as the company relies heavily on customer advances. Additionally, Phase III also carries implementation risk with scheduled completion by FY2029. Acuité believes that 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 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 a 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 and safe project execution remain key ESG monitorable factors.
 

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • More than expected overall collection from committed receivables and unsold inventory.
  • Timely realization of customer advances pending from sold inventory.
  • Timely completion of the ongoing project.
  • Average DSCR remains above 3 times on a sustained basis.
Potential triggers (individual or collective) for a downward rating action:
  • Sharp decline in cash flow due to slackened saleability of the project or delays in project execution.
  • Lower than expected sales traction leading to increased dependence on debt.
  • Average DSCR remains below 1 times on a sustained basis.
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 company proposes to raise debt (NCDs) up to Rs. 690 Cr., which are expected to be received in two tranches of Rs. 590 Cr. and Rs. 100 Cr. The proposed refinancing is expected to provide a longer repayment tenor wherein the principal repayment for proposed NCD facility is expected to commence from Q3 FY2029. The company is expected to generate net cash surplus of about Rs. 393.19 Cr. till FY2029 as against debt repayment obligations of Rs. 69.00 Cr. in the same period. Further, the moderate construction progress, customer advance inflows and sales performance relative to its debt availed, are likely to translate into an average DSCR of 1.5 times during FY2027–2031. Acuité expects the liquidity position of the company to remain adequate, backed by expected steady cash inflows and nil debt repayment obligations in the near term.
 
Outlook: Stable
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Other Factors affecting Rating
­None
 

Particulars Unit FY 26 (Actual) FY 25 (Actual)
Operating Income Rs. Cr. 237.26 322.08
PAT Rs. Cr. (81.72) (111.21)
PAT Margin (%) (34.44) (34.53)
Total Debt/Tangible Net Worth Times (2.29) (2.92)
PBDIT/Interest Times 0.28 0.57
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
06 Mar 2026 Non-Covertible Debentures (NCD) Long Term 325.00 ACUITE B+ | Stable (Upgraded from ACUITE B | Stable)
Non-Covertible Debentures (NCD) Long Term 275.00 ACUITE B+ | Stable (Upgraded from ACUITE B | Stable)
Proposed Non Convertible Debentures Long Term 25.00 ACUITE Not Applicable (Withdrawn)
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 Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Not Applicable INE0K4K07022 Non-Convertible Debentures (NCD) Listed SEBI 28 Mar 2024 19.50 31 Aug 2027 325.00 Simple ACUITE B+ | Stable | Reaffirmed
Not Applicable INE0K4K07030 Non-Convertible Debentures (NCD) Listed SEBI 28 Mar 2025 20 28 Mar 2029 275.00 Simple ACUITE B+ | Stable | Reaffirmed
Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Proposed to be Listed SEBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 690.00 Simple ACUITE B+ | Stable | Assigned
Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Proposed to be Listed SEBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE B+ | Stable | Assigned
Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Proposed to be Listed SEBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE B+ | Stable | Assigned
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.
­

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