Modis Navnirman SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Jun 2022 – 28 Jun 2022
- Listing date
- 06 Jul 2022
- Face value
- ₹10 per share
- Issue price
- ₹180 per share
- Lot size
- 800 shares
- Total issue size
- ₹22.68 Cr
- Market cap at offer price
- ₹76.14 Cr
- Promoter holding
- 99.98% → 70.20% pre-issue → post-issue
- ISIN
- INE0L0L01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- Shop No.5, CTS 947/A, Rashmi Tara Datta Mandir, Kandivali (West), 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 | 68,000 | — | — |
Application size
Minimum 800 shares per lot, in multiples, at ₹180
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 800 | ₹1,44,000 |
| S-HNI (min) | 2 | 1,600 | ₹2,88,000 |
| S-HNI (max) | 6 | 4,800 | ₹8,64,000 |
| B-HNI (min) | 7 | 5,600 | ₹10,08,000 |
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 (₹) | 4.47 | — |
| P/E (×) | 40.27 | — |
| Market cap | — | ₹76.14 Cr |
Key performance indicators
- Return on net worth
- 34.81%
- Debt / equity
- 4.95
- NAV per share
- ₹12.84
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Modis Navnirman SME
Modi's Navnirman Limited (MNL) is an established Mumbai-based real estate development company originally incorporated as a Limited Liability Partnership on December 31, 2015, and converted to a Public Limited Company on March 4, 2022. The Modi Group has over a decade of presence in the construction industry. As of the prospectus date, the Company and its subsidiary (SMNPL) along with a proprietary concern of promoters (Modis Nirman) have constructed and delivered approximately 1.45 lakh sq. ft. of carpet area of residential units (translating to 2.10 lakh sq. ft. of constructed area). The Company develops residential and commercial projects primarily through joint development agreements with cooperative housing societies in Mumbai's western suburbs, receiving approximately 50% or more share in redevelopment projects as compensation for construction services.
Company Analysis
from RHPModi's Navnirman Limited is a Mumbai-based real estate developer engaged in residential and commercial property development, primarily through joint development agreements in the western suburbs of Mumbai.
Modi's Navnirman Limited (MNL) is an established Mumbai-based real estate development company originally incorporated as a Limited Liability Partnership on December 31, 2015, and converted to a Public Limited Company on March 4, 2022. The Modi Group has over a decade of presence in the construction industry. As of the prospectus date, the Company and its subsidiary (SMNPL) along with a proprietary concern of promoters (Modis Nirman) have constructed and delivered approximately 1.45 lakh sq. ft. of carpet area of residential units (translating to 2.10 lakh sq. ft. of constructed area). The Company develops residential and commercial projects primarily through joint development agreements with cooperative housing societies in Mumbai's western suburbs, receiving approximately 50% or more share in redevelopment projects as compensation for construction services.
Objects of the Issue
- Investment in subsidiary company – SMNPL for Repayment of its outstanding unsecured loans ₹1,779.00 lakhs p.18
- General Corporate Purpose ₹421.00 lakhs p.18
- Investment in subsidiary company – SMNPL for Repayment of its outstanding unsecured loans ₹1,779.00 lakhs p.66
- General Corporate Purpose ₹421.00 lakhs p.66
Issue Structure
- Total Issue
- ₹2,268.00 lakhs
- Fresh Issue
- 12,60,000 Equity Shares of ₹10 each for cash at a price of ₹180 per share, aggregating to ₹2,268.00 lakhs
- Price Band
- ₹180 per share
- Lot Size
- 800 Equity Shares (market lot) and in multiples of 800 thereafter; subject to a minimum allotment of 800 Equity Shares
- Face Value
- ₹10 per share
Business Model
The Company earns revenue primarily from the sale of residential and commercial real estate units developed through joint development agreements with cooperative housing societies. Revenue is recognized upon transfer of control of units to customers based on the stage of completion of construction. The Company also generates income from related party transactions, including income from Modi's Nirman.
Business Segments
SWOT Analysis
- • Established group with over a decade of construction experience in Mumbai(p.18)
- • Substantial completed delivery track record(p.18)
- • Over 50% share in redevelopment projects(p.23)
- • Experienced management team with deep industry expertise(p.83)
- • Established brand recognition with 'Rashmi' brand synonymous with quality projects(p.83)
- • Proven execution track record with 7 completed projects(p.84)
- • Strong project pipeline providing substantial cash flow visibility(p.84)
- • Zero bank debt and debt-free asset base(p.82)
- • All ongoing projects RERA registered(p.84)
- • Established real estate developer with multi-project portfolio(p.152)
- • Debt-free capital structure with no bank borrowings(p.152)
- • Proven track record in mid-market and affordable housing segment(p.152)
- • Strong profitability metrics with improving PAT(p.162)
- • High unsecured borrowings on demand(p.24)
- • Negative operating cash flows in recent period(p.25)
- • Related party transactions represent material portion of liabilities(p.27)
- • Pending registrations and compliance gaps(p.23)
- • Trademark and logo not yet registered(p.29)
- • No long-term supply agreements with material providers(p.33)
- • Heavy dependence on promoters for operations(p.35)
- • Limited geographic footprint restricted to western suburbs of Mumbai(p.83)
- • Dependency on unsecured director loans for project financing(p.66)
- • Small employee base of only 11 employees(p.82)
- • Heavy reliance on external contractors for project execution(p.88)
- • Heavy dependence on related party financing(p.140)
- • Significant working capital blockage in inventory(p.164)
- • Limited operational track record as formal company entity(p.152)
- • Tax litigation involving directors(p.169)
- • Large projected growth in Indian real estate market(p.18)
- • Substantial planned project pipeline in Western Suburbs(p.32)
- • Potential for geographical expansion beyond Mumbai(p.37)
- • Expansion to other regions within and outside Mumbai(p.84)
- • Leverage listing to attract senior management talent via ESOP schemes(p.84)
- • Significant housing shortage creating demand for residential development(p.80)
- • Real estate sector expected to grow substantially to $1 trillion by 2030(p.78)
- • Growth in private society redevelopment with favorable FSI benefits(p.80)
- • Transition to asset-light development agreement model(p.152)
- • Multiple ongoing projects in construction pipeline(p.152)
- • Growing mid-market and affordable housing market in India(p.152)
- • Strong demand for residential real estate in western suburbs of Mumbai(p.152)
- • Entire revenue concentrated in Western Suburbs Mumbai(p.24)
- • Real estate market cyclicality and economic sensitivity(p.30)
- • Changes to FSI/TDR regime impact on project economics(p.23)
- • Construction delays and cost inflation from material/labour shortages(p.32)
- • Interest rate and inflation volatility(p.41)
- • RERA compliance non-conformance penalties(p.31)
- • Intense competition from organized and unorganized players(p.38)
- • COVID-19 pandemic ongoing uncertainties(p.26)
- • Intense competition from larger regional and national real estate developers(p.89)
- • Availability of suitable land parcels for development is limited in Mumbai(p.89)
- • Global economic slowdown and geopolitical tensions impacting growth(p.75)
- • Regulatory changes in development control regulations affecting project economics(p.92)
- • Cyclical nature of real estate sector and market disruptions(p.84)
- • Intense competition from larger domestic developers(p.154)
- • COVID-19 pandemic impact on construction timelines and labor availability(p.153)
- • Dependence on Indian economic conditions and real estate market cycles(p.154)
- • Scarcity of suitable land parcels in desirable Mumbai locations(p.155)
- • Interest rate and inflation volatility affecting real estate demand(p.154)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dineshkumar Modi | Promoter | 47.23% | 33.16% |
| Rashmi Modi | Promoter | 27.99% | 19.65% |
| Mahek Modi | Promoter | 24.75% | 17.38% |
| Dineshkumar Modi | Promoter | 47.24% | 33.16% |
| Rashmi Modi | Promoter | 27.99% | 19.65% |
| Mahek Modi | Promoter | 24.75% | 17.38% |
| Payal Sheth | Promoter Group | 0.01% | 0.01% |
| Rinkle Doshi | Promoter Group | 0.01% | 0.01% |
| Dineshkumar Modi | Promoter | 47.23% | — |
| Mahek Modi | Promoter | 24.75% | — |
| Rashmi Modi | Promoter | 27.99% | — |
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.