Press Release

Press Release

April 07, 2026

TANGLED UP IN GREEN PROPERTIES PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Non Convertible Debentures (NCD)	1500.00	Provisional \| ACUITE BB+ \| Stable \| Assigned	-
Total Outstanding	1500.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has assigned its long-term rating of ‘Provisional ACUITE BB+’ (read as Provisional ACUITE doble B plus) on the Rs.1500.00 Cr of proposed Non-Convertible Debentures (NCD) of Tangled Up In Green Properties Private Limited (TUIGPPL). The outlook is ’Stable’.

The rating on the proposed Rs.1,500 Cr. NCD is provisional and the final rating is subject to the following documents

Final Term Sheet/ Placement Memorandum
Debenture Trustee Agreement (DTA) and Debenture Trust Deed (DTD)
Deed of Hypothecation / Pledge and creation of security
Final term sheet mentioning the ring fencing of the designated cash flows
Independent Legal Opinion mentioning about ring fencing of cashflows

Rationale for rating assigned:
The assigned rating reflects the strong promoter profile and established track record of the "Total Environment Group", supported by its long-standing presence in the residential real estate segment. The rating also factors in the healthy progress and robust sales traction in the Tangled Up in the Green (TUIG) land plotting project, providing near to medium term liquidity. Further comfort derives from the ringfencing of the designated project cash flows alongside comprehensive security and covenant protections. However, the rating is constrained by execution, funding and offtake risks in early-stage projects such as Harohalli and Vaderahalli, where substantial construction and sales are yet to be achieved. The entity remains exposed to sectoral cyclicality and demand-linked risks.

About Company

Tangled Up In Green Properties Private Limited (TUIGPPL) is a Bengaluru-based real estate company incorporated on 7 December 2021. The company is part of the Total Environment Group, a reputed real estate developer with a strong footprint in Bengaluru and other South Indian markets. TUIGPPL is engaged in land development and plottingin a premium segment. The company is promoted and managed by Mr. Kamal Sagar and Ms. Shibanee Sagar, supported by other professional directors associated with the Total Environment Group.

About the Group

Total Environment Group is a design-led real estate developer with a strong presence in Bengaluru and projects across Hyderabad, Pune and select international markets. Founded by Kamal Sagar, the group follows an integrated in-house development model encompassing architecture, construction and landscaping. With over three decades of experience, the group has completed more than 10 million sq. ft. across residential, plotted, commercial and hospitality segments, and continues to focus on design excellence, execution quality and long-term value creation.

Unsupported Rating

Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has consolidated the project cash flows (Harohalli (Zones 1, 2 and 3), Tangled Up In Green (TUIG) and Vaderahalli land plotting project earmarked for the repayment of proposed NCDs as these projects’ receivables are ringfenced and have cash fungibility for the repayment of the debt. These projects are in four separate entities namely, Total Environment Living Spaces Private Limited (TELSPL), Total Environment Constructions Private Limited (TECPL), Sai Yelahanka Development Private Limited (SYDPL) and Tangled Up In Green Properties Private Limited (TUIGPPL).

Key Rating Drivers

Strengths

Extensive experience of the promoters
Tangled Up In Green Properties Private Limited (TUIGPPL), based in Bengaluru, is promoted by Mr. Kamal Sagar and Ms. Shibanee Sagar, founders of the Total Environment Group, who bring over three decades of experience in design-led real estate development. The promoter group has successfully delivered more than 10 million sq. ft. across residential, plotted, commercial and hospitality segments, with a strong reputation for quality, sustainability and execution discipline. TUIGPPL benefits from the group’s integrated in-house capabilities spanning architecture, construction and project management, which support timely execution and cost control. The strong brand equity of “Total Environment” and the promoters’ proven execution track record enhance the company’s ability to undertake and monetise large-scale residential and plotted developments.

Demand visibility in plotted development by market positioning
The projects of Tangled Up In Green Properties Private Limited (TUIGPPL) are positioned across established residential locations in Bengaluru, which benefit from good infrastructure, road connectivity and sustained residential demand. The company’s focus on premium plotted developments offers faster monetisation and relatively lower execution risk compared to large high-rise residential projects. The Total Environment group’s long-standing reputation for design-led, sustainable and community-oriented developments enhances customer confidence and project acceptance. This positioning has resulted in healthy sales traction, particularly in the Tangled Up in the Green project, which has achieved ~93% absorption levels as of February 2026. Acuité believes that the promoters’ proven execution capabilities and track record of timely delivery will continue to support steady offtake in ongoing plotted developments and upcoming projects.

Weaknesses

High Project implementation, funding and offtake Risk in upcoming designated projects
The Rs.1,500.00 crore secured NCD transaction is exposed to high implementation and offtake risk, as debt servicing is highly dependent on cash flows from a mix of advanced and early-stage residential plotted projects aggregating ~5.75 million sq. ft of the total saleable area, with a project cost of Rs 4,850 crore. While the Tangled Up in the Green project (TUiG) has achieved ~93% absorption and provides medium-term liquidity, projects such as Harohalli (Zones 1, 2 and 3) and Vaderahalli are still at early stages, with substantial construction and sales yet to be achieved. The projects entail significant execution activity over the next few years, increasing sensitivity to delays in approvals, construction timelines and infrastructure readiness. The debt repayment necessitates timely sales traction and customer collections at regular intervals. Any moderation in absorption, pricing pressure or delays in collections could strain expected cash flows. Despite structural mitigants such as ringfencing and security cover, the transaction remains vulnerable to real estate market cyclicality and demand fluctuations. Acuite notes that timely realisation of customer advances across the designated a projects will remain a key monitorable.

Susceptibility to Real Estate Cyclicality 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. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Given the high level of financial leverage, the high cost of borrowing prevents the real estate's developers' from significantly reducing prices to boost sales growth. 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.

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)

The ringfencing of the designated project cash flows for the repayment of the NCD's is expected to provide support to the liquidity and debt servicing.

Stress Case Scenario
Acuité has sensitised consolidated designated project cash flows regarding the selling price and sales velocity during the NCD tenure, even after which the interest and debt service coverage ratios are expected to remain comfortable at ~ 2.30 times to meet the debt obligations.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Consistent improvement in in sales velocity and collections across designated projects.
Achievement of > 70% sales absorption in Harohalli Zones 1–3 within 18 months of launch and >40–45% absorption in Vaderahalli plotted inventory within 12–15 months of launch, improving cash flow visibility and reducing execution risk.

Potential triggers (individual or collective) for a downward rating action:

Delays in project execution or weaker demand environment
Deterioration in debt servicing metrics
Sales absorption falling >25% below base-case assumptions for Harohalli and Vaderahalli projects for two or more consecutive quarters

All Covenants

Ongoing compliance with detailed business plans. These plans to be annexed to and will form part of definitive documents;
Minimum NPV cover of 1.60x during the tenure of the facility Investment Amount. It is hereby clarified that NPV shall be computed using a discounting factor which is equivalent to Transaction Returns.

Liquidity Position:

Adequate

The liquidity position of the company remains adequate and is supported by medium-term cash flow visibility from the highly progressed Tangled Up in the Green project, which has achieved ~93% absorption with significant collections already realised. Liquidity comfort is further aided by ring fenced project cash flows, operative accounts and a 15-month moratorium on debt servicing, allowing cash build-up during the initial period. However, sustained liquidity remains dependent on timely customer collections and progress in monetisation of early-stage projects as repayments commence. The company has unencumbered cash and cash equivalents of ~Rs. 208.3 Cr as on Feb 2026. The projected average debt service coverage ratio (DSCR) in stress case scenario for designated projects over the loan tenure is expected to remain at ~2.30 times during the tenor of the loan.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	10.76	4.85
PAT	Rs. Cr.	(39.44)	(35.36)
PAT Margin	(%)	(366.47)	(729.02)
Total Debt/Tangible Net Worth	Times	(8.25)	(3.92)
PBDIT/Interest	Times	0.72	0.44

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

None

Any Other Information

Supplementary disclosures for Provisional Ratings Risks associated with the provisional nature of the credit rating
In case there are material changes in the terms of the transaction after the initial assignment of the provisional rating and post the completion of the issuance (corresponding to the part that has been issued). Acuité will withdraw the existing provisional rating and concurrently assign afresh final rating in the same press release, basis the revised terms of the transaction.

Rating that would have been assigned in absence of the pending steps/documentation
No rating would have been assigned in the absence of pending steps/documentation.

Timeline for conversion to Final Rating for a debt instrument proposed to be issued
The provisional rating shall be converted into a final rating within 90 days from the date of issuance of the proposed debt instrument. Under no circumstance shall the provisional rating continue upon the expiry of 180 days from the date of issuance of the proposed debt instrument.

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.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 :

Not Applicable

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 Non Convertible Debentures	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1300.00	Simple	Provisional \| ACUITE BB+ \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	200.00	Simple	Provisional \| ACUITE BB+ \| Stable \| Assigned

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sl No	Names of the companis
1	Tangled Up In Green Properties Private Limited (Consolidated with Sai Yelahanka Development Private Limited)
2	Total Environment Constructions Private Limited
3	Total Environment Living Spaces Private Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dharmavarapu Sai Kiran
Senior 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.

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. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.