Neelkanth Realtors Steps into the Public Market

In a significant move to bolster its financial standing, Neelkanth Realtors, a prominent real estate developer based in Mumbai, has officially filed draft papers with the Securities and Exchange Board of India (Sebi) to initiate an Initial Public Offering (IPO). This strategic step is aimed at raising funds to fuel the company's ambitious projects and reduce its debt burden.

Details of the IPO

The IPO comprises a fresh issuance of up to 1.35 crore equity shares, each with a face value of Rs 10. The proceeds from this offering are earmarked for the development of ongoing and upcoming projects, including the notable Neelkanth Plaza Project in Thane. Additionally, a portion of the funds will be allocated for debt repayment and general corporate purposes.

Investment Opportunities

Investors have a unique opportunity to be part of Neelkanth Realtors' growth story. The public issue is structured to reserve 50% of the offer for qualified institutional investors, 15% for non-institutional investors, and 35% for retail investors, ensuring a wide participation base.

Neelkanth Realtors' Market Position

With a legacy dating back to the 1980s, Neelkanth Realtors has established itself as a formidable player in Mumbai's eastern suburbs and Thane City. The company competes with leading developers such as Godrej Properties and Macrotech Developers, showcasing its strong market presence and commitment to quality real estate development.

Financial Performance

For the three months ending June 2024, Neelkanth Realtors reported a total income of Rs 15.08 crore and a profit of Rs 2.38 crore, reflecting its robust financial health and operational efficiency.

Swastika Investmart Ltd and Link Intime India are the sole book running lead manager and registrar for the IPO, respectively, with the shares proposed to be listed on both the BSE and NSE.