Neelkanth Realtors Ltd. has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India. The initial public offering will entirely include a fresh issuance of 1.35 crore shares with a face value of Rs 10 each. The company disclosed that there will be no offer-for-sale by promoters and investors.
Swastika Investmart Ltd. is the book running lead manager and Link Intime India Private Ltd. is the registrar to the issue.
Neelkanth Group is a real estate developers in Mumbai's Eastern Suburbs and Thane City within the Mumbai Metropolitan Region (MMR). The company specialises in creating distinctive residential and commercial real estate developments in these key micro-markets.
The Bhimjyani Family has been involved in real estate development since the 1980s, originally operating with partners under the ‘Neelkanth' tradename. In 2009, following a court-approved mutual arrangement between the partner families, the Bhimjyani Family ventured independently into real estate development under the name of Neelkanth Group.
The agreement allows both parties to use the ‘Neelkanth' brand for their respective real estate businesses, and the company now operates under the name Neelkanth (Bhimjyani Group).
The company plans to use the net proceeds from the fresh issue for key purposes including funding part of the development costs for ongoing and upcoming projects. The proceeds will also be used for repaying or pre-paying certain outstanding borrowings, and general corporate purposes.
These objectives are aligned with the main objects clause Memorandum of Association, enabling the company to continue with existing business activities while undertaking new initiatives funded by the proceeds.
Furthermore, the listing of equity shares will enhance its visibility, strengthen the brand image, and create a public market for the firm's shares, benefiting both current and potential customers, the company said in its draft red herring prospectus filed with SEBI.
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