1.24x Security CoverPromoter GuaranteeStep-up coupon on downgrade
BBB+Aug 2026Rating rationale summary
Assigned Acuite BBB+/Stable rating. The rating reflects the company's established track record, healthy 300 Cr order book, strong fleet strength, and steady financial performance.
Summary points
- 12.00% p.a. coupon paid monthly
- 1.24x Security Cover maintained
- Personal guarantee of Promoters
Outlook implications
The Stable outlook reflects the expectation that AVP Infracon will maintain its financial risk profile supported by steady execution of its order book.
Implications for investors
- Investors receive a steady 12.00% monthly coupon, backed by a hard 1.24x security cover on land and pledged shares, plus a step-up coupon of 2% in case of rating downgrade.
Watch for: Execution of order book, debt/equity ratio (must stay below 2.00x), and maintenance of 1.24x security cover.Rating Drivers
1.24x asset cover
Rs 300 Cr order book
Concentrated in TN
How this issuer compares to peers
Benchmark yield, balance-sheet strength, and risk indicators against similar issuers to make the credit case easier to validate.
Where it stands out
Robust order book and fleet ownership
Possesses an order book of ~300 Cr and owns over 200+ fleet equipment and 3 RMC plants, enabling tight control on execution.