Neelkanth Realtors files draft papers with Sebi to raise funds through IPO

Neelkanth Realtors, a Mumbai-based real estate developer, has filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering.

The Initial Public Offering (IPO) is entirely a fresh issuance of up to 1.35 crore equity shares with a face value of Rs 10 each, according to the Draft Red Herring Prospectus (DRHP).

Proceeds from the fresh issue will be utilised by Neelkanth Realtors towards funding a part of the costs to be incurred in the development of its ongoing projects, and upcoming projects, including Neelkanth Plaza Project in Thane.

As per the draft papers, funds from the IPO will also be used by the Mumbai-based company for repayment of debt and general corporate purposes.

In the public issue, 50 per cent of the offer will be reserved for qualified institutional investors, 15 per cent for non-institutional investors and 35 per cent for retail investors.

Neelkanth Realtors is one of the prominent real estate developers in Mumbai's eastern suburbs and Thane City in the Mumbai Metropolitan Region (MMR), according to a report by Anarock.

The Bhimjyani family was in the business of real estate development with its erstwhile partners and were operating under the trade name 'Neelkanth' since the 1980s. Neelkanth Realtors competes with the likes of prominent developers such as Godrej Properties, Macrotech Developers (Lodha Group), Hiranandani Constructions Runwal Group, Kalpataru and L&T Realty Ltd.

For the three months period ended June 2024, the company recorded a total income of Rs 15.08 crore and clocked a profit of Rs 2.38 crore.

Swastika Investmart Ltd is the sole book running lead manager and Link Intime India is the registrar for the IPO.

The shares are proposed to be listed on the BSE and NSE.