ICRA LIMITED June 13, 2017
Aasan Corporate Solutions Private Limited
Instrument* | Rated Amount (in crore) | Rating Action |
Non-Convertible Debentures (NCDs) | 250.00 | Provisional rating of [ICRA]A+(SO) (Stable) confirmed as final |
Non-Convertible Debentures (NCDs) | 150.00 | Provisional rating of [ICRA]A+(SO) (Stable) confirmed as final |
Non-Convertible Debentures (NCDs) | 600.00 | [ICRA]A+(SO) (Stable); outstanding |
Non-Convertible Debentures (NCDs) | 300.00 | [ICRA]A+(SO) (Stable); outstanding |
Non-Convertible Debentures (NCDs) | 250.00 | [ICRA]A+(SO) (Stable); outstanding |
Non-Convertible Debentures (NCDs) | 250.00 | [ICRA]A+(SO) (Stable); outstanding |
*Instrument Details are provided in Annexure-1
Rating ActionICRA has confirmed the provisional ratings assigned both the Rs. 150.00 crore1and Rs. 250 crore non- convertible debenture (NCD) programmes of AASAN Corporate Solutions Private Limited (ACSPL)2. The ratings carry a stable outlook.
RationaleIn Mar-17, ICRA had assigned Provisional [ICRA]A+(SO) rating to both the Rs.150 crore and Rs. 250 crore non-convertible debenture (NCD) programmes of ACSPL. The ratings carried a stable outlook. The company has shared the execution version of the legal documents for the aforesaid NCDs with ICRA. Since the execution version of the transaction documents are in line with the rating conditions, the said rating has now been confirmed as final.
Analytical approach:The rating action is based on the execution version of the transaction documents being in line with the terms initially shared with ICRA.
1 100 lakh = 1 crore = 10 million
2 For complete rating scale and definitions, please refer ICRA's website (www.icra.in) or other ICRA Rating Publications
Key rating drivers Credit StrengthsGuarantee from Sri Krishna Trust (SKT) and Piramal Management Services Private Limited (PMSPL)
Payment mechanism designed to ensure timely payment to the investors
SKT holds around 43.73% shareholding in Piramal Enterprises Limited (PEL) (rated [ICRA] AA/[ICRA]A1+) and is the single largest shareholder in PEL
The Rs. 150 crore NCDs would have a scheduled tenor of around 3 years from the deemed date of allotment while the Rs. 250 crore NCDs would have a scheduled tenor of upto 370 days from the deemed date of allotment. The principal amount on both the NCDs would be payable in one bullet installment on the scheduled maturity date. The coupon would be payable on a quarterly basis for both the aforesaid NCDs. The guarantees from SKT and PMSPL are joint and several, and would cover all Issuer obligations that may arise on the rated NCDs. The payment mechanism is designed to ensure timely payment to the NCD investors, as per the terms of the transaction.
The rating for the NCDs is based on the strength of unconditional, irrevocable and continuing guarantees by a) SKT which is one of the principal holding entities of the Ajay Piramal group and b) PMSPL. The transaction also envisages an external borrowing cap on SKT linked to the market value of the free and unencumbered shares of PEL which lends further comfort.
About the IssuerAASAN Corporate Solutions Private Limited (ACSPL: erstwhile AASAN Developers & Construction Private Limited) was setup in July 14, 2011 as a debt -free company with no operating or investing activities. FY2016 onwards however, the company has been engaged in investing in group and other entities engaged in the real estate and leasing division. The loans advanced to group and external companies, are funded majorly by way of external loans.
The sole shareholder of ACSPL is Alpex Holdings Private Limited (from November 2014; prior to that, the company was held by PEL InfraConstructions & Developers Private Limited, PRL Developers Private Limited and Thoughtful Realtors Private Limited), which is held by Akshar Fincom Private Limited, which is the sole trustee of Sri Gopalkrishna Trust.
About SKTThe Sri Krishna Trust (SKT) is a trust company formed for managing the investment holdings of the promoters in Piramal Enterprises Limited (PEL) and Piramal Phytocare Limited (PPL). Mr. Ajay Piramal
& Dr. Mrs. Swati Piramal are the trustees of SKT. Mr. Ajay Piramal holds 99.9% stake in PMSPL while Dr. Swati Piramal holds the balance 0.1% stake in PMSPL. The trust was incorporated in the year 2005. However, not all the investments of the group are managed through SKT.
SKT is the holding company for three entities - Piramal Enterprises Limited (PEL), Piramal Corporate Services Limited (PCSL) and Piramal Phytocare Limited (PPL) (erstwhile Piramal Life sciences Limited). Mr. Ajay Piramal & Dr. Mrs. Swati Piramal are the trustees of SKT while PEL Management Services Private Limited is the sole trustee of The Sri Hari Trust.
Status of non-cooperation with previous CRA: Not Applicable Any other information: Not Applicable Links to applicable Criteria: Approach for rating debt instruments backed by third-party explicit supportSr. No | Name of Instrume nt | Current Rating (FY2018) | Chronology of Rating History for the past 3 years | |||||||||
Type | Rat ed am oun t (Rs. cro res) | Date & Rating | Date & Rating in FY2017 | Month- year & Rating in FY2016 | Month- year & Rating in FY2015 | |||||||
June 2017 | May, 2017 | March 2017 | Februar y 2017 | Decembe r 2016 | October, 2016 | Septemb er, 2016 | May 2016 | July 06, 2015 | June 2015 | - | ||
1 | NCD 1 | Long Term | 300 | - | [ICRA]A + (SO) (Stable) | - | - | - | [ICRA]A + (SO) (Stable) | Provision al [ICRA]A + (SO) (Stable) | - | |
2 | NCD 2 | Long Term | 250 | - | [ICRA]A + (SO) (Stable) | [ICRA]A + (SO) (Stable) | Provision al [ICRA]A + (SO) (Stable) | - | - | - | - | |
3 | NCD 3 | Long Term | 250 | - | [ICRA]A + (SO) (Stable) | - | - | [ICRA] A+ (SO) (Stable) | - | - | - | |
4 | NCD 4 | Long Term | 600 | [ICRA] A+ (SO) (Stable) | Provision al [ICRA]A +(SO) (Stable) | - | - | - | - | - | - | |
5 | NCD 5 | Long Term | 150 | [ICRA] A+ (SO) (Stable ) | Provisio nal [ICRA] A+ (SO) (Stable) | - | ||||||
6 | NCD 6 | Long Term | 250 | [ICRA] A+ (SO) | Provisi onal [ICRA] A+ (SO) | - | ||||||
ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". The classification of instruments according to their complexity levels is available on the websitewww.icra.in
Annexure-1 Details of InstrumentName of the instrument | Date of issuance | Coupon rate | Maturity Date | Size of the issue (Rs. Cr) | Current Rating and Outlook |
NCD 1 | Jun 2015 | 11.80% | Jun 2018 | 300.00 | [ICRA]A+ (SO) (Stable) |
NCD 2 | May 2016 | 11.15% | Jun 2019 | 250.00 | [ICRA]A+ (SO) (Stable) |
NCD 3 | Aug 2016 | 10.75% | Sep 2019 | 250.00 | [ICRA]A+ (SO) (Stable) |
NCD 4 | Dec 2016 | 9.60% | Dec 2019 | 600.00 | [ICRA]A+ (SO) (Stable) |
NCD 5 | Mar 2017 | 9.60% | Mar 2020 | 150.00 | [ICRA]A+ (SO) (Stable) |
NCD 6 | Mar 2017 | 9.60% | April 2018 | 250.00 | [ICRA]A+ (SO) (Stable) |
Source: AASAN Corporate Solutions Private Limited
ICRA Limited published this content on 12 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 14 June 2017 07:39:10 UTC.
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