Mumbai-based Neelkanth Realtors files for IPO

Mumbai, December 31, 2024: Mumbai-based Realtor Neelkanth Realtors Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO). The IPO, with a face value of ₹10, is entirely a fresh issue of shares up to 1.35 crore shares with no offer-for-sale component.
The proceeds from the fresh issue to the extent of ₹67.83 crore will be used for funding development cost of its Neelkanth Plaza Project; repayment and/or pre-payment or repayment, in full or part, of certain outstanding borrowings availed by the company; and general corporate purposes.
The issue is being made through the book-building process, wherein not more than 50 per cent of the issue is allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer is assigned to non-institutional and retail individual bidders respectively.

Neelkanth Realtors, a prominent real estate developer in Mumbai’s Eastern Suburbs and Thane City in the Mumbai Metropolitan Region, specializes in crafting unique residential and commercial real estate developments within key micro-markets. The Bhimjyani Family, originally involved in real estate development since the 1980s alongside their partners, operated under the tradename ‘Neelkanth.’ Following a court-approved mutual arrangement in 2009, the Bhimjyani Family ventured independently into real estate under the company’s banner. The agreement allowed both parties to use the ‘Neelkanth’ brand for their real estate businesses.
The company is helmed by experienced promoters, Rashmi C. Bhimjyani and Bhavik R. Bhimjyani, who collectively bring over three decades of expertise in real estate and trading. In addition to its completed projects, Neelkanth Realtors is actively developing three ongoing projects, encompassing a RERA carpet area of 1,11,486.95 square feet. Furthermore, it has four upcoming projects in the pipeline, with an estimated RERA carpet area of 3,75,078 square feet.

The company’s revenue from operations for the fiscal 2024 was ₹54.06 crore as compared to ₹57.39 crore for the fiscal 2023. Profit after tax for the fiscal 2024 was ₹17.50 crore as compared to ₹0.08 crore for the fiscal 2023. For the three months ended June 30, 2024, revenue from operations stood at ₹14.30 crore, and profit after tax stood at ₹2.38 crore.