ICRA has also withdrawn rating for Rs270cr proposed NCD programme.
According to the rationale, the revision in outlook takes into account significant improvement in the net operational cashflows of Sobha in FY2021, which along with curtailment of investments in land have supported reduction in debt levels.
The rating reaffirmation continues to take into account Sobha’s established position in the Bengaluru real estate market and its strong in-house project execution capabilities in the real estate and contracting sectors.
The Stable outlook on the [ICRA]A+ rating reflects ICRA’s opinion that the credit profile of Sobha will remain supported by the company’s established brand recall in the real estate market and healthy saleability across majority of its projects.
At around 12:12 PM, Sobha was trading at Rs499.70 apiece down by Rs8.55 or 1.68% on Sensex.