Kalpataru Subsidiary Kalpataru Properties Private Limited Receives ICRA [BBB-]/Stable Rating for ₹230.56 Crore HDFC Bank Term Loan
Kalpataru Properties Secures Investment-Grade Rating for HDFC Bank Term Loan
Kalpataru Properties Private Limited (KPPL) is a wholly-owned step-down subsidiary of Kalpataru Limited. KPPL is developing residential projects – K. Magnus, K. Azuro and K. One in Mumbai.
The subsidiary has been assigned [ICRA]BBB- (Stable)—a rating that falls within the investment-grade category—by ICRA Limited for a long-term term loan of ₹230.56 crore from HDFC Bank Limited.
Rating Basis and Project Coverage
For arriving at the rating of Kalpataru Properties Private Limited (KPPL), ICRA combined the cash flows of projects being executed by KPPL, the pool of projects financed by HDFC Bank under Agile Real Estate Private Limited (AREPL), Kalpataru Limited (KL) and KPPL, the project funded by PNB Housing Finance Limited in AREPL and the project funded by HDFC Capital in Agile Real Estate Dev Private Limited (AREDPL).
The pool of projects financed by HDFC Bank have cross collateralisation, surplus sharing arrangements, restrictive conditions for release of surplus until the loan is repaid and a cross default clause.
Parent Company Support
The rating factors in the likelihood of KPPL's parent, KL, extending timely financial support to KPPL, given their substantial operational, financial and managerial linkages and the company's strategic importance to the ultimate parent.
About Kalpataru Limited
Kalpataru Limited is an integrated real estate development company with over 130+ completed projects across Mumbai, Thane, Panvel, Pune, Hyderabad, Indore, Bengaluru, and Jodhpur. The company specializes in luxury, premium, and mid-income residential, commercial, and retail developments, managing all aspects of real estate development from land acquisition to design, construction, and sales.
Kalpataru is recognized as the fifth-largest developer within the MCGM area and the fourth-largest in Thane by unit supply during the period 2019–2023. Over 95% of Kalpataru's developable area (ongoing, forthcoming, and planned projects) is concentrated in the Mumbai Metropolitan Region (MMR) and Pune.
What the Rating Means
BBB- represents the lowest level of "Investment Grade"—signifying adequate capacity to meet financial obligations but subject to adverse economic conditions. A stable outlook indicates the rating agency expects the rating to remain unchanged over the near term.