Kesar India SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Jun 2022 – 04 Jul 2022
- Listing date
- 12 Jul 2022
- Face value
- ₹10 per share
- Issue price
- ₹170 per share
- Lot size
- 800 shares
- Total issue size
- ₹15.82 Cr
- Market cap at offer price
- ₹60.02 Cr
- Promoter holding
- 100.00% → 73.65% pre-issue → post-issue
- ISIN
- INE0L1C01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Flat No, F-101, Jagat Plaza Amravati Road, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 47,200 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹170
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,36,000 |
| S-HNI (min) | 2 | 1,600 | ₹2,72,000 |
| S-HNI (max) | 7 | 5,600 | ₹9,52,000 |
| B-HNI (min) | 8 | 6,400 | ₹10,88,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.54 | — |
| P/E (×) | 22.55 | — |
| Market cap | — | ₹60.02 Cr |
Key performance indicators
- Return on net worth
- −1.52%
- ROCE
- −2.00%
- Debt / equity
- 1.28
- PAT margin
- 1.00%
- NAV per share
- −₹301.38
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kesar India SME
Kesar India Limited (formerly Kesar Impex (India) Private Limited) was incorporated in November 2003 and converted to a public limited company in December 2021. The company undertakes real estate development and construction, primarily developing residential and commercial plotting, residential houses, villas, towers, complexes, and commercial shops and malls. As of December 31, 2021, the company is developing plot land admeasuring 21,24,654 sq.ft located in Nagpur. The company focuses on developing projects on land held as stock in trade and by entering into Memoranda of Understanding for project management, marketing, and branding development services with third parties for project development.
Company Analysis
from RHPKesar India Limited is a real estate development and construction company focused on residential, commercial, and retail property projects in Nagpur, Maharashtra.
Kesar India Limited (formerly Kesar Impex (India) Private Limited) was incorporated in November 2003 and converted to a public limited company in December 2021. The company undertakes real estate development and construction, primarily developing residential and commercial plotting, residential houses, villas, towers, complexes, and commercial shops and malls. As of December 31, 2021, the company is developing plot land admeasuring 21,24,654 sq.ft located in Nagpur. The company focuses on developing projects on land held as stock in trade and by entering into Memoranda of Understanding for project management, marketing, and branding development services with third parties for project development.
Objects of the Issue
- To finance development Expenses of our Projects & upcoming Projects ₹1050.00 lakhs p.20
- Acquisition of land or land development right ₹150.00 lakhs p.20
- General corporate purposes ₹230.68 lakhs p.20
- Finance development Expenses of our Projects & upcoming Projects ₹1050.00 lakhs p.72
- Acquisition of land or land development right ₹150.00 lakhs p.72
- General corporate purposes ₹230.68 lakhs p.72
- Not specified in the document
Issue Structure
- Total Issue
- ₹1581.68 lakhs (930,400 Equity Shares of ₹10 face value at ₹170 per share)
- Fresh Issue
- 930,400 Equity Shares aggregating ₹1581.68 lakhs
- Offer for Sale
- N.A
- Price Band
- ₹170 per Equity Share (Fixed Price)
- Lot Size
- 800 Equity Shares (Application Lot)
- Face Value
- ₹10.00 per Equity Share
Business Model
The company develops real estate projects through (1) direct land acquisition and development, and (2) entering into Memoranda of Understanding with third parties for project management, marketing, and branding development services. Revenue is generated from the sale of developed real estate units including plots, residential houses, villas, towers, and commercial spaces.
Business Segments
SWOT Analysis
- • Experienced management team with industry knowledge(p.100)
- • Established brand in Nagpur Division with proven expertise in land plotting(p.79)
- • Quality assurance and construction standards as competitive advantage(p.100)
- • Systematic process for project development and land acquisition(p.102)
- • Real estate development with established brand portfolio(p.158)
- • Focused geographic presence in Nagpur with diversified project types(p.158)
- • Industry association membership and certification(p.158)
- • Strong profitability in recent period(p.162)
- • Significant growth in revenue from operations(p.162)
- • Significant unsold inventory(p.31)
- • Substantial indebtedness with significant debt service obligations(p.33)
- • High dependence on Promoters and Key Management Personnel(p.34)
- • Corporate records discrepancies with ROC(p.35)
- • Unregistered trademark reliance with time-limited assignment(p.36)
- • Pending regulatory approvals and registrations(p.35)
- • Negative operating cash flows historically(p.31)
- • Unsecured loans repayable on demand from related parties(p.37)
- • Negative net worth and return on net worth(p.80)
- • Small scale operations with limited geographical presence(p.100)
- • Limited employee base and organizational capacity(p.102)
- • Dependence on small number of projects(p.98)
- • Heavy reliance on unsecured borrowings from promoters and related parties(p.166)
- • Elevated debt-to-equity ratio indicating financial leverage(p.153)
- • Negative equity in prior financial years(p.140)
- • History of minimal profitability before recent period(p.141)
- • Significant inventory concentration in land holdings(p.147)
- • Real estate sector growth and employment generation(p.20)
- • Increased NRI investment expected in real estate(p.20)
- • Complementary growth with corporate environment and office space demand(p.20)
- • Expansion to geographies beyond Central India(p.100)
- • Growth in residential real estate market driven by urbanization(p.95)
- • Consolidation opportunities from RERA regulatory changes(p.101)
- • Large land reserves for future development(p.98)
- • Policy support and FDI opening for real estate development(p.87)
- • Real estate sector growth and urbanization tailwinds(p.158)
- • Expansion through joint ventures and partnerships(p.154)
- • Infrastructure development and capability enhancement(p.158)
- • Capital raising through SME IPO for business expansion(p.158)
- • Regulatory uncertainty and RERA compliance challenges(p.32)
- • Title uncertainty and defects in land parcels(p.30)
- • Construction material price volatility and supply disruption(p.33)
- • Labour shortages and contract labour availability(p.31)
- • Project completion delays and long development cycles(p.36)
- • Property tax and stamp duty increases(p.36)
- • Real estate market cyclicality and illiquidity(p.36)
- • Increased competition in land acquisition(p.29)
- • COVID-19 pandemic impact on operations(p.33)
- • Competition from national and regional developers(p.102)
- • Regulatory risks under RERA including penalties for non-compliance(p.106)
- • Housing supply-demand imbalance affecting pricing and demand(p.90)
- • Interest rate and financing availability fluctuations affecting buyer capacity(p.102)
- • COVID-19 pandemic impact on business and operations(p.159)
- • Regulatory and legal changes affecting real estate sector(p.159)
- • Competitive pricing pressures in real estate market(p.159)
- • Economic and demographic volatility(p.159)
- • Natural disasters and calamities affecting real estate development(p.159)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Gopal FatehChand Gupta | Promoter | 91.92% | 67.64% |
| Gopal FatehChand Gupta | Promoter | 91.92% | 67.69% |
| Sangeeta Gopal Gupta | Promoter Group | 0.00% | 0.00% |
| Yash Gopal Gupta | Promoter Group | 2.98% | 2.19% |
| Sachin Gopal Gupta | Promoter Group | 5.09% | 3.75% |
| Pankhuri Yash Gupta | Promoter Group | 0.00% | 0.00% |
| Shweta Gupta | Promoter Group | 0.00% | 0.00% |
| Yash Gupta HUF | Promoter Group | 0.00% | 0.00% |
| Gopal Gupta | Promoter | 91.15% | — |
| Sangeeta Gopal Gupta | Promoter | 6.92% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.