I C R A Limited

An Associate of Moody’s Investors Service

October 25, 2010

ICRA assigns LBB+ rating to the bank facilities of

Rakindo Kovai Township Limited; assigns a stable
outlook
1
ICRA has assigned an LBB+ rating to the Rs. 50. 0 crore term loan facilities of Rakindo Kovai
Township Limited (“RKTL”/ “the Company”) †. The outlook on the long-term rating is stable.

The rating takes into account the market risk owing to the inherent cyclicality in the demand scenario in
the real estate industry coupled with the premium pricing targeted on various product offerings in the
township project. The ratings also consider the implementation risk arising from the large scale and
nascent stage of the project, and large funding requirement towards development of physical and
social infrastructure for the project. The rating, nevertheless, takes comfort from the significant
experience of the promoters in the industry, equity contribution from promoters utilised to complete
land acquisition for the entire project and limited statutory risks involved, with majority of project
clearances being in place.

Company Profile

Incorporated in 2007, Rakindo Kovai Towship Limited is a joint venture between Rakeen Public Joint
Stock Company, Ras al Khaimah and Trimex group, Dubai. The company is a part of the Rakindo
group, which is involved in the development of real estate projects in various parts of India and has
been established as a SPV for development of integrated residential township project in Coimbatore.
The township project, named „Kovai Hills‟, is being developed on an 864 Acre landscape in the
outskirts of Coimbatore (Tamil Nadu) near Kovaipudur on the Coimbatore-Palakkad road corridor. The
project is planned on the live-work-play model with an 18-hole golf course and 25-acre IT SEZ as the
key attractions. Apart from this flagship „Kovai Hills‟ project, RKTL is also developing a smaller
affordable housing project (named „Orchids‟) abutting the „Kovai Hills‟ site. The Orchids will include 170
row houses and 12 Stilt+4 apartment blocks. Both the Orchids and Kovai Hills projects are in the
incipient stages with the Orchids project being launched for sale in early 2010 and Kovai Hills Project
yet to be launched to customers.

For further details please contact:

Analyst Contacts:
Mr. Vikas Agarwal (Tel. No. +91-124-4545301)
vikas@icraindia.com

Relationship Contacts:
Mr. Jayanta Chatterjee (Tel. No. +91-80-43326401/ 098 450 22459)
jayantac@icraindia.com

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1
100 lakh = 1 crore = 10 million
†
For complete rating scale and definitions, please refer to ICRA‟s website www.icra.in or other ICRA Rating
Publications.

PRESS RELEASE

Disclaimer: ICRA Ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments.
ICRA Ratings are subject to a process of surveillance, which may lead to revision in ratings. Please visit our website
(www.icra.in) or contact any ICRA office for the latest information on ICRA Ratings outstanding.