SBL Infratech SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Sep 2021 – 20 Sep 2021
- Listing date
- 28 Sep 2021
- Face value
- ₹10 per share
- Issue price
- ₹111 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹2.49 Cr
- Market cap at offer price
- ₹9.01 Cr
- Promoter holding
- 90.01% → 66.33% pre-issue → post-issue
- ISIN
- INE0DLM01024
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Fast Track Finsec Pvt.Ltd.
- Registered office
- Plot No.44, Block B-10, Second Floor, Sector-13, Dwarka, New Delhi
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 | 21,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹111
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,33,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,66,400 |
| S-HNI (max) | 7 | 8,400 | ₹9,32,400 |
| B-HNI (min) | 8 | 9,600 | ₹10,65,600 |
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 |
|---|---|---|
| Market cap | — | ₹9.01 Cr |
About SBL Infratech SME
SBL Infratech Limited was incorporated as a private limited company on August 10, 2015, and converted to a public limited company on July 28, 2020. The company operates in the real estate sector, specifically in real estate brokerage and residential land development. The company started its business in 2015 with real estate brokerage operations. In 2016, it successfully launched and executed the Shubh Niwas project in Neemrana, Rajasthan, where it acquired rural land, got it converted to residential use, and sold plots after subdivision. In 2017, the company successfully launched the Dayal Vihar project, also in Neemrana, Rajasthan. The company's business model involves acquiring land, obtaining regulatory approvals for conversion to residential use, subdividing the land into plots, and selling these plots to customers.
Company Analysis
from RHPSBL Infratech Limited is a real estate development and brokerage company engaged in land acquisition, conversion, plotting, and residential property sales primarily in Neemrana, Rajasthan.
SBL Infratech Limited was incorporated as a private limited company on August 10, 2015, and converted to a public limited company on July 28, 2020. The company operates in the real estate sector, specifically in real estate brokerage and residential land development. The company started its business in 2015 with real estate brokerage operations. In 2016, it successfully launched and executed the Shubh Niwas project in Neemrana, Rajasthan, where it acquired rural land, got it converted to residential use, and sold plots after subdivision. In 2017, the company successfully launched the Dayal Vihar project, also in Neemrana, Rajasthan. The company's business model involves acquiring land, obtaining regulatory approvals for conversion to residential use, subdividing the land into plots, and selling these plots to customers.
Objects of the Issue
- Working Capital Requirement ₹130.00 Lakh p.16
- General Corporate Purposes ₹55.29 Lakh p.16
- Issue Expenses ₹51.80 Lakh p.16
- Working Capital Requirements Rs. 130.00 Lakh p.69
- General Corporate Purposes Rs. 55.29 Lakh p.69
- Issue Expenses Rs. 51.80 Lakh p.69
Issue Structure
- Total Issue
- ₹237.09 Lakh
- Fresh Issue
- 2,13,600 Equity Shares of face value of Rs.10/- each at a price of Rs.111/- per Equity Share aggregating Rs.237.09 Lakh
- Price Band
- Rs.111/- per Equity Share (Fixed Price Issue)
- Face Value
- Rs.10/- per Equity Share
Business Model
The company operates as a real estate developer and broker. It earns revenue through the acquisition of rural land, conversion to residential use, subdivision into plots, and sale of these plots to customers. The company receives token amounts from customers for bookings and subsequent plot purchases.
Business Segments
SWOT Analysis
- • Strong promoter control and alignment(p.26)
- • Real estate exposure to high-growth sector(p.15)
- • Successful project execution track record(p.15)
- • Experienced management team with real estate expertise(p.96)
- • Strong brand positioning and customer relationships(p.96)
- • Successful track record in project execution(p.91)
- • Network and relationships in operating regions(p.95)
- • Real estate development business with diversified activities(p.166)
- • Emphasis on quality design and construction through external partnerships(p.166)
- • Scalability and operational flexibility through outsourced model(p.166)
- • Strong cash position post-IPO(p.149)
- • Non-compliance with Stamp Act provisions(p.20)
- • Default in TDS deposit under Income Tax Act(p.20)
- • Leased registered office with termination risk(p.21)
- • No trademark registration or brand protection(p.21)
- • Independent Directors lacking proficiency certification(p.21)
- • Sustained negative operating cash flows(p.22)
- • High working capital requirements with inventory concentration(p.22)
- • No insurance coverage for business risks(p.24)
- • Conflict of interest with promoter-controlled competitor(p.27)
- • Non-compliance with Accounting Standard 18 for related party transactions(p.32)
- • Unsecured loans subject to recall(p.32)
- • Delayed ROC filings and compliance lapses(p.33)
- • Limited financial resources and scale(p.96)
- • Small employee base dependent on commission agents(p.91)
- • No formal dividend policy and no dividend history(p.140)
- • Minimal insurance coverage and no trademark protection(p.97)
- • Very low profitability and earnings per share(p.97)
- • Significant dependence on few customers for substantial revenue(p.173)
- • Minimal fixed asset base(p.147)
- • Negative historical earnings - substantial losses in prior years(p.155)
- • High reliance on promoter funding with unsecured loans(p.156)
- • Recent entry into real estate development with limited track record(p.159)
- • NRI investment tailwind in real estate(p.15)
- • India's rising rank in global property valuations(p.15)
- • Geographic expansion beyond Neemrana(p.23)
- • Working capital enhancement post-IPO(p.16)
- • Growing Indian real estate market expected to reach $1 trillion by 2030(p.86)
- • Government initiatives supporting affordable housing and real estate development(p.87)
- • Rapid urbanization and rising residential demand(p.88)
- • Expected positive market sentiment and consolidation opportunities(p.96)
- • High institutional investment inflows into real estate sector(p.87)
- • Growth in affordable housing and residential real estate sector(p.167)
- • Expansion of real estate operations with newly acquired land inventory(p.168)
- • Potential migration to main board of BSE following successful listing(p.195)
- • Economic downturn and COVID-19 impact on real estate(p.24)
- • Land price volatility and timing risk(p.33)
- • Intense local and national competition(p.32)
- • Geographic concentration risk in Neemrana(p.23)
- • RERA compliance and regulatory penalties(p.30)
- • Natural calamities and external shocks(p.38)
- • Interest rate and inflation pressures(p.34)
- • Counterparty credit and payment default risk(p.31)
- • Customer termination and booking cancellation(p.24)
- • Changes in government policy and taxation(p.37)
- • Intense competition from fragmented and unorganized market players(p.96)
- • Current market downturn affecting real estate sector(p.96)
- • Changes in government policy and regulations(p.96)
- • Regulatory compliance requirements under Real Estate (Regulation and Development) Act, 2016(p.105)
- • Dependence on agricultural land conversion and state/local authority approvals(p.106)
- • Cyclical nature of real estate industry affecting revenues(p.167)
- • Regulatory and policy changes in real estate sector(p.167)
- • Competition from existing and potential real estate competitors(p.173)
- • Volatility in capital markets and financing costs(p.167)
- • Significant revenue decline in FY 2021(p.168)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ankit Sharma | Promoter | 45.67% | 33.63% |
| Ms. Shifali Sharma | Promoter | 44.34% | 32.67% |
| Ankit Sharma | Promoter | 45.67% | — |
| Shifali Sharma | Promoter | 44.34% | — |
| Ankit Sharma | Promoter | 47.66% | — |
| Shifali Sharma | Promoter | 44.34% | — |
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.