The Client
A promoter-led infrastructure consultancy established in the mid-1990s and built entirely through organic growth.
The Challenge
For nearly 30 years, the promoter had heard the same message from lenders:
"Infrastructure and EPC businesses require 100% collateral. Additional lending without equivalent security is not possible."
Over time, this belief became deeply ingrained. As a result, opportunities to optimise the company's capital structure, banking strategy, and lender relationships were never fully explored.
The TAP Approach
Promoter-Bank Engagement
We facilitated regular promoter-bank meetings to create more structured and transparent communication between the business and its lenders.
Structured Lender Communication
TAP helped establish a consistent approach to presenting business performance, requirements, and future plans to lenders.
Credit Profile Improvement
We initiated measures focused on improving the company's credit rating and strengthening its overall credit profile.
Financial Discipline
Financial discipline and compliance management were strengthened to build greater confidence among lending institutions.
Performance & Covenant Management
Quarterly performance reviews and proactive covenant management helped maintain transparency and build sustained lender confidence.
Long-Term Banking Strategy
The focus extended beyond individual facilities to developing stronger, long-term banking relationships that could support the company's growth.
The Outcome
The company's collateral coverage reduced from 105%+ to 42%, while credit facilities increased from ₹32 Cr to ₹140 Cr.
At the same time, the company moved from limited lender confidence to multi-bank confidence, while its credit rating improved from CRISIL B (INC) to CRISIL BBB- (Positive).
The Impact
The transformation was as much psychological as financial.
The promoter moved from believing that growth required one-to-one collateral support to experiencing first-hand that institutional confidence, transparency, governance, and consistent performance could unlock substantially larger facilities.
The journey fundamentally changed how the company approached its banking relationships and growth planning - shifting from a collateral-led mindset to a more strategic approach to capital planning and banking strategy.
Key Takeaway
The biggest constraint in business is often not capital. It is the belief about what is possible.