Neelkanth Realtors IPO: Neelkanth Realtors, a company owned by Bhimjyani Group, is going to launch its IPO. For this, the company has filed Draft Red Herring Prospectus (DRHP) with market regulator SEBI. The company is planning to raise funds for the development of its project Neelkanth Plaza. This project is located in Thane, Maharashtra. Under the IPO, Neelkanth Realtors will issue 1.35 crore new shares. At the same time, there will be no sale through Offer for Sale (OFS). This means that the entire proceeds from the IPO will go to the company.
Business of Neelkanth Realtors
Neelkanth Realtors is a leading real estate developer focused in the eastern suburbs of Mumbai and Thane city in the Mumbai Metropolitan Region (MMR). The company has 39 projects with a developable area of 15.68 lakh sq ft, while it has three ongoing projects with an estimated RERA carpet area of 1.11 lakh sq ft and four upcoming projects with an estimated RERA carpet area of 3.75 lakh sq ft.
Where will Neelkanth Realtors use the funds?
Rs 67.83 crore raised from the fresh issue will be used for the development of a commercial project – Neelkanth Plaza – in Thane. The remaining IPO funds will be used to repay debt (NCD) and general corporate purposes. As of November 27, 2024, the total amount outstanding for non-convertible debentures (NCDs) was Rs 200 crore.
Financials of Neelkanth Realtors
Talking about financials, Neelkanth Realtors has reported a profit of Rs 17.5 crore for the year ending March 2024, which has increased sharply from Rs 0.07 crore in the previous financial year. However, revenue declined by 5.8 percent to Rs 54 crore during the same period. Profit stood at Rs 2.4 crore on revenue of Rs 14.3 crore for the quarter ending June 2024. The sole book running lead manager for the public issue will be Swastika Investmart.
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