Neelkanth Realtors IPO

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

Industry Outlook

• 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.

• 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.

• 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.

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.

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.

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 Neo 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.