Care Ratings downgrades Goswami Infratech to B+

Care Ratings has downgraded to B+, the BB- rating assigned to the Rs 8343 crore non-convertible debentures (NCDs) of Goswami Infratech Private Limited (GIPL) citing delayed fund raising at the group level and taking cognizance of the extension sought by GIPL for final redemption of its NCDs.

"The company has cited that while the refinancing transaction was set to conclude before April 30, 2026, most debenture holders insisted on extending the redemption timeline, given the prevailing market conditions. Hence, in the interim period, to align with the investor requirement, the company has sought the extension of redemption date from April 30, 2026 to June 30, 2026 which has been approved by the investors ahead of the due date of payment (consent being effective from April 29, 2026)," Care Ratings said.

The rating factors GIPL's low operating cash flows with the entity being holding company and no major cashflow in the form of interest/dividend either received in past or expected in the period going forward, inherent market-related risk impacting the market value of direct and indirect investments of credit option provider and elevated refinancing risk associated with the NCD repayments.

GIPL is a special purpose vehicle (SPV) owned by the Shapoorji Pallonji (SP) Group. It is controlled by the Mistry family, primarily serving as a holding company to manage debt and hold strategic assets.

Care Ratings had listed the company's elevated refinancing risk and exposure to market risk as key weaknesses.

"GIPL and CIPL (the put option provider) being investment holding companies, their income largely comprises dividend income received from the investments in various companies. For the repayment of borrowings, these companies highly depend on the cash flow of underlying entities," the rating agency said.

However, Care Ratings said that the GIPL group has demonstrated its ability to successfully consummate large refinance deals in the past, which partially offsets the aforementioned risk.

GIPL continues to hold 25.03% stake in Afcons Infrastructure Limited (AIL), which imparts financial flexibility. The rating continues to derive strength in the form of Credit Support Undertaking (CSU) from Cyrus Investments Private Limited (CIPL – Credit Support Provider, CSP) and a pledge of its portfolio holding. CIPL (promoter holding company) holds a 9.185% stake in Tata Sons Private Limited (TSPL), which has provided financial flexibility for the group holding companies to raise funds.