IPO Details
Issue Date
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Investment/lot
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Price Range
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Lot Size
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IPO Size
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Schedule of Neelkanth Realtors Ltd IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Neelkanth Realtors Limited IPO
The IPO consists of a fresh issue of up to 1,35,00,000 equity shares with a face value of ₹10 each, while there is no offer for sale component. The total issue size is also up to 1,35,00,000 equity shares, but the exact amount is yet to be disclosed. The shares will be credited on TBA. The shares will be allotted on TBA and the initiation of refunds will take place on TBA.
Objectives of Neelkanth Realtors Limited IPO
- Funding the development costs of ongoing and upcoming projects
- Repayment or prepayment, in full or part, of certain outstanding borrowings
- General corporate purposes
Neelkanth Realtors Limited IPO Valuation
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors (NIIs) | Not less than 15% of the net issue |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
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Market growth and demand: The industry is witnessing steady growth, driven by increasing consumer demand, technological advancements, and supportive government policies. Rising investments and infrastructure expansion are further fuelling market opportunities, positioning the company well to capitalise on emerging trends and strengthen its market presence.
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Competitive landscape: The sector is highly competitive, with established players and new entrants driving innovation and efficiency. Companies with strong financials, scalable operations, and robust business models stand to gain a competitive edge. The IPO proceeds will help the company expand, optimise resources, and enhance operational efficiency to compete effectively.
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Regulatory and economic factors: The industry is influenced by evolving regulations, economic cycles, and global market dynamics. Favourable policies, sustainability initiatives, and digital transformation trends are shaping the future landscape. The company’s strategic positioning, coupled with prudent financial planning, will be crucial in navigating challenges and leveraging growth opportunities.
Company Information
Neelkanth Realtors Ltd (Bhimjyani Group) is a prominent real estate developer in Mumbai’s Eastern Suburbs and Thane City, specialising in distinctive residential and commercial projects. With a strong brand legacy since the 1980s, the company has built a reputation for customer-centric, differentiated offerings that cater to various price points and market demands.
The company operates with in-house capabilities, managing all aspects of real estate development, from land acquisition to project completion. Its deep market understanding, design expertise, and strong brand presence have contributed to its steady growth. Neelkanth’s strategic presence in the Mumbai Metropolitan Region (MMR), combined with extensive marketing initiatives and execution excellence, has resulted in high brand recall, positioning it as a trusted developer in the region.
Neelkanth Realtors Ltd Ltd Strengths
Established brand with strong market presence
The company has built a reputable and trusted brand in the residential real estate sector of Mumbai’s Eastern Suburbs and Thane City. With decades of experience, it has developed a deep understanding of market trends and customer preferences. This long-standing presence has allowed it to establish credibility, maintain strong relationships with stakeholders, and gain a loyal customer base in the region.
Diversified portfolio across various price segments
The company offers a well-diversified portfolio that caters to a wide spectrum of customers, from affordable housing to premium residential projects. By addressing different price points, it ensures a broad market reach and risk diversification. This strategic approach allows it to remain competitive, capture demand across economic segments, and provide high-quality offerings tailored to various customer needs and investment capacities.
Proven project execution and timely delivery
With a strong track record in efficient project management, the company consistently delivers projects within reasonable timelines. Its expertise in planning, resource allocation, and execution ensures minimal delays and cost overruns. By maintaining high construction standards, adhering to regulatory requirements, and optimising processes, the company enhances customer confidence and strengthens its reputation for reliability in the competitive real estate market.
Risks of Neelkanth Realtors Limited IPO
1. Brand reputation risk
The company operates under the "Neelkanth" brand, which is also used by other entities linked to the Bhimjyani Family. Any negative publicity affecting the brand—whether related to the company or not—could erode its reputation. This may impact its ability to develop and sell real estate in the Mumbai Metropolitan Region (MMR), ultimately affecting profitability and future growth prospects.
2. Market concentration risk
The company is highly dependent on the real estate market in Mumbai Eastern Suburbs and Thane City. As of November 30, 2024, it had 3 completed projects, 3 ongoing projects, and 4 upcoming projects in this region. Economic downturns, regulatory changes, or natural disasters in these areas could severely impact property demand, pricing, and the company's financial performance.
3. Project completion risk
Delays in completing ongoing and upcoming projects could harm the company's financial condition. The company has 1,11,486.95 sq. ft. of carpet area for sale in ongoing projects and 3,75,078 sq. ft. in upcoming projects. Issues such as land title disputes, regulatory changes, financing difficulties, or objections from existing societies could prevent timely completion, leading to revenue loss and reputational damage.
All Financial Information about Neelkanth Realtors Ltd
Comparison with peers
| Name of the Company | Total Income (₹ in crores) | Current Market Price (₹) | EPS (Basic) (₹) | NAV per Equity Share (₹) |
|---|---|---|---|---|
Neelkanth Realtors Limited | 55.05 | - | 6.08 | 21.23 |
Suraj Estate Developers Limited | 386.85 | 592 | 20.29 | 118.08 |
Arkade Developers Limited | 636.589 | 172 | 8.09 | 21.28 |
Peninsula Land Limited | 527.87 | 43.40 | 3.13 | 6.66 |
Anchor Investor Bidding Date: TBA
IPO Registrar and Book Running Lead Manager
- Registrar: Link Intime India Private Limited
- Book Running Lead Managers: Swastika Investmart Limited
Business Model
Neelkanth Realtors is a real estate builder and earns its revenues from the building and sale of real estate properties. Neelkanth Realtors Limited follows a customer-centric business model that focuses on addressing diverse customer requirements across various locations, ticket sizes, and configurations. The company leverages its deep understanding of the real estate market, coupled with design and execution capabilities, strong brand presence, and extensive marketing initiatives to deliver differentiated product offerings successfully. Additionally, it conducts its real estate development activities in-house, encompassing planning, marketing, procurement, and construction, supported by a distribution network of non-exclusive sales partners to cater to property buyers from booking to final delivery.
Company Growth Trajectory
The EBITDA of Neelkanth Realtors Limited has shown significant growth over the years. In FY 2022, the EBITDA stood at ₹15.53 crores, which increased to ₹39.89 crores in FY 2024. Similarly, the revenue from operations grew from nil in FY 2022 to ₹57.39 crores in FY 2023 and then surged to ₹54.05 crores in FY 2024. This substantial growth in both EBITDA and revenue highlights the company's improved operational efficiency and robust business expansion over the past three fiscal years.
Neelkanth Realtors Limited Profit and Loss
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Total Income (in ₹ crores) | 55.05 | 57.86 | 0.70 |
Profit Before Tax (in ₹ crores) | 24.19 | 0.10 | 0.27 |
Profit After Tax (in ₹ crores) | 17.49 | 0.07 | (0.09) |
EPS (Basic) | 6.08 | 0.03 | -0.03 |
Neelkanth Realtors Limited Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 24.19 | 0.10 | 0.27 |
Net Cash from (used in) Operating Activities (in ₹ crores) | 23.40 | 16.39 | (37.47) |
Net Cash from (used in) Investing Activities (in ₹ crores) | 3.49 | 1.05 | 3.03 |
Net Cash from (used in) Financing Activities (in ₹ crores) | (28.63) | (17.17) | 34.34 |
Net Cash and Cash Equivalents (in ₹ crores) | (1.73) | 2.35 | (0.08) |
How to Check Allotment Status of Neelkanth Realtors Limited IPO?
1. Visit the Registrar's Website
To check the IPO allotment status for Neelkanth Realtors Limited IPO, visit the official website of Link Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the 'Submit' button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Neelkanth Realtors Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your Neelkanth Realtors IPO allotment status will be displayed.
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Neelkanth Realtors IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your Neelkanth Realtors IPO bid and allotment details will be displayed.
How to Apply for Neelkanth Realtors Limited IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Neelkanth Realtors Ltd IPO FAQs
What is the Neelkanth Realtors Ltd IPO?
Neelkanth Realtors Ltd IPO consists of a fresh issue of up to 1,35,00,000 Equity Shares.
Is Neelkanth Realtors IPO coming?
Yes, Neelkanth Realtors Ltd is expected to come up with its IPO soon.
Who is the CEO of Neelkanth Realtors?
Bhavik Rashmi Bhimjyani is the chairman of Neelkanth Realtors.
What is the lot size of shares of Neelkanth Realtors Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of Neelkanth Realtors Ltd?
You may read more about Neelkanth Realtors and its IPO from the company’s draft red herring prospectus (DRHP) here
