PR

Press Release
PURANIK BUILDERS LIMITED
November 08, 2022
Rating Downgraded,Downgraded & Withdrawn and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	1200.00	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*	-
Non Convertible Debentures (NCD)	132.00	ACUITE BB \| Downgraded \| Issuer not co-operating*	-
Total Outstanding Quantum (Rs. Cr)	132.00	-	-
Total Withdrawn Quantum (Rs. Cr)	1200.00	-	-

Rating Rationale

Acuite has downgraded the long term rating to 'ACUITE BB' (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) on Rs. 132.00 crore non-convertible debentures of Puranik Builders Ltd. Further, Acuite has downgraded and withdrawn long term rating to 'ACUITE BB' (read as ACUITE double B) from 'ACUITE BB+' (read as ACUITE double B plus) on Rs. 1200.00 crore bank facilities of Puranik Builders Ltd. The rating downgrade is on the account of information risk. This rating continues to be an indicative rating and is based on the best available information.
The rating is withdrwan on account of written request received from company and NOC received from banker. The withdrawal is in accordance with Acuite's policy on withdrwal of rating.

About the Company

Mumbai-based, Puranik Builders Limited (PBL) was incorporated in 1990 as a private limited company. Subsequently, the constitution was changed into public limited in May 2018. The company, along with its subsidiaries, is engaged as a real estate developer with a major presence in Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR). Puranik Group is promoted by Mr. Gopal Puranik and Mr. Ravindra Puranik

Non-cooperation by the issuer/borrower:

Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

Limitation regarding information availability:

The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

About the Rated Entity - Key Financials

The rated entity has not shared the latest financial statements despite of repeated requests

Rating Sensitivity

"No information provided by the issuer / available for Acuite to comment upon."

Material Covenants

None

Liquidity Position

"No information provided by the issuer / available for Acuite to comment upon."

Outlook

Not applicable

Status of non-cooperation with previous CRA

None

Any other information

Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups

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
02 Dec 2021	Proposed Bank Facility	Long Term	113.16	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Non Convertible Debentures	Long Term	132.00	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	50.00	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	280.00	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Secured Overdraft	Long Term	18.75	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	351.09	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	157.00	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Dropline Overdraft	Long Term	20.00	ACUITE BB+ (Downgraded and Issuer not co-operating*)
	Term Loan	Long Term	210.00	ACUITE BB+ (Downgraded and Issuer not co-operating*)
02 Dec 2020	Term Loan	Long Term	50.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Secured Overdraft	Long Term	20.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Proposed Bank Facility	Long Term	113.16	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Dropline Overdraft	Long Term	18.75	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Non Convertible Debentures	Long Term	132.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Term Loan	Long Term	210.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Term Loan	Long Term	157.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Term Loan	Long Term	351.09	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
	Term Loan	Long Term	280.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Stable)
21 May 2020	Term Loan	Long Term	210.00	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	157.00	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	351.09	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	280.00	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Dropline Overdraft	Long Term	18.75	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Proposed Bank Facility	Long Term	113.16	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Non Convertible Debentures	Long Term	132.00	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Term Loan	Long Term	50.00	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
	Secured Overdraft	Long Term	20.00	ACUITE BBB \| Stable (Downgraded from ACUITE BBB+ \| Stable)
21 Nov 2019	Non Convertible Debentures	Long Term	132.00	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	157.00	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	50.00	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	351.09	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	210.00	ACUITE BBB+ \| Stable (Assigned)
	Dropline Overdraft	Long Term	18.75	ACUITE BBB+ \| Stable (Assigned)
	Secured Overdraft	Long Term	20.00	ACUITE BBB+ \| Stable (Assigned)
	Proposed Bank Facility	Long Term	113.16	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	280.00	ACUITE BBB+ \| Stable (Assigned)

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 Applicable	Non-Convertible Debentures (NCD)	Not Applicable	Not Applicable	Not Applicable	132.00	Simple / Complex	ACUITE BB \| Downgraded \| Issuer not co-operating*
Not Applicable	Not Applicable	Proposed Long Term Bank Facility	Not Applicable	Not Applicable	Not Applicable	113.16	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*
Union Bank of India	Not Applicable	Secured Overdraft	Not Applicable	Not Applicable	Not Applicable	20.00	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*
State Bank of India	Not Applicable	Secured Overdraft	Not Applicable	Not Applicable	Not Applicable	18.75	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*
State Bank of India	Not Applicable	Term Loan	Not available	Not available	Not available	50.00	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*
Piramal Finance Limited	Not Applicable	Term Loan	Not available	Not available	Not available	280.00	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*
Indostar Capital Finance Limited	Not Applicable	Term Loan	Not available	Not available	Not available	157.00	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*
Indostar Capital Finance Limited	Not Applicable	Term Loan	Not available	Not available	Not available	210.00	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*
HDFC Bank Ltd	Not Applicable	Term Loan	Not available	Not available	Not available	351.09	Simple	ACUITE BB \| Downgraded & Withdrawn \| Issuer not co-operating*

Contacts

Analytical	Rating Desk
Aditya Gupta Vice President-Rating Operations Tel: 022-49294041 aditya.gupta@acuite.in Deepti Bhandarkar Analyst-Rating Operations Tel: 022-49294065 deepti.bhandarkar@acuite.in	Varsha Bist Senior Manager-Rating Operations Tel: 022-49294011 rating.desk@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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité.