Suyog Gurbaxani Funicular Ropeways SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 01 Nov 2021 – 08 Nov 2021
- Listing date
- 16 Nov 2021
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹29.50 Cr
- Market cap at offer price
- ₹112 Cr
- Promoter holding
- 90.57% → 64.78% pre-issue → post-issue
- ISIN
- INE07GA01011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- 18, Suyog Industrial Estate, 1st Floor, LBS Marg, Vikhroli 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 |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 3,33,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,80,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹112 Cr |
About Suyog Gurbaxani Funicular Ropeways SME
SGFRL, incorporated in February 2010 and converted to public limited in September 2017, is an infrastructure development and construction company specializing in funicular ropeways (incline ropeways). The company operates under a Build, Operate and Transfer (BOT) model wherein it constructs ropeway systems and related facilities for government entities, operates them for a concession period to generate revenues through toll/ticket collections and ancillary services, then transfers the asset back to the government. The company's flagship project is the Funicular Ropeway System at Saptashrungi Gad Temple near Nashik, Maharashtra, which includes the ropeway, a shopping mall, hotel, and parking facilities. Commercial operations commenced on July 3, 2018. The company derives revenue from toll collections on the ropeway, rental income from shop/kiosk operators, and booking/hotel revenues from the integrated facilities.
Company Analysis
from RHPSuyog Gurbaxani Funicular Ropeways Limited is an infrastructure development and construction company engaged in building and operating funicular ropeway systems for tourist and religious destinations.
SGFRL, incorporated in February 2010 and converted to public limited in September 2017, is an infrastructure development and construction company specializing in funicular ropeways (incline ropeways). The company operates under a Build, Operate and Transfer (BOT) model wherein it constructs ropeway systems and related facilities for government entities, operates them for a concession period to generate revenues through toll/ticket collections and ancillary services, then transfers the asset back to the government. The company's flagship project is the Funicular Ropeway System at Saptashrungi Gad Temple near Nashik, Maharashtra, which includes the ropeway, a shopping mall, hotel, and parking facilities. Commercial operations commenced on July 3, 2018. The company derives revenue from toll collections on the ropeway, rental income from shop/kiosk operators, and booking/hotel revenues from the integrated facilities.
Objects of the Issue
- Repayment of Unsecured loans ₹500.00 lakhs p.18
- General Corporate Purposes ₹136.74 lakhs p.18
- Repayment of loans ₹500.00 lakhs p.69
- General Corporate Purposes ₹136.74 lakhs p.69
- Repayment of borrowings ₹ 500.00 lakhs p.151
Issue Structure
- Total Issue
- ₹2,949.75 lakhs
- Fresh Issue
- ₹675.00 lakhs (15,00,000 equity shares of ₹10 each at ₹45 per share)
- Offer for Sale
- ₹2,274.75 lakhs (50,55,000 equity shares of ₹10 each at ₹45 per share)
- Price Band
- ₹45 per equity share
- Lot Size
- 3,000 equity shares minimum, in multiples of 3,000 thereafter
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through a Build, Operate and Transfer (BOT) model. It bids for government-tendered ropeway and infrastructure projects, constructs the facilities, and then operates them during a concession period to generate revenues. Revenue streams include: (1) toll/ticket income from ropeway users, (2) rental income from commercial spaces (shops, kiosks) within the facility, (3) hotel and parking facility revenues, and (4) booking income from ancillary services. After the concession period expires, the asset is transferred back to the government.
Business Segments
SWOT Analysis
- • First mover in India's funicular ropeway sector with completed operational project(p.23)
- • Experienced management team with over a decade in infrastructure and construction(p.35)
- • Successfully completed complex infrastructure project (Saptashrungi Funicular Ropeway)(p.23)
- • Integrated in-house execution capabilities spanning design, construction, operations, and maintenance(p.89)
- • Established relationships with leading banks for project financing at competitive terms(p.90)
- • Successful completion and cordial relationship with Government of Maharashtra(p.90)
- • Experienced senior management with 20-30+ years in infrastructure and construction(p.90)
- • First-mover advantage as operator of India's first funicular ropeway project(p.88)
- • Efficient business model with cost optimization and low labour costs(p.90)
- • Established funicular ropeway expertise with first-mover advantage in India(p.152)
- • Experienced management team with 30+ years in construction and infrastructure(p.112)
- • Integrated tourism infrastructure with diversified revenue streams (ropeway, retail, hotel, parking)(p.152)
- • Long-term government concession extending to 2034 providing stable revenue visibility(p.137)
- • Safety compliance with international standards and foreign consultant certification(p.153)
- • Single project dependency creating significant revenue concentration risk(p.29)
- • Substantial accumulated losses and negative net worth trend(p.19)
- • High debt levels relative to equity base(p.28)
- • Limited operating history with only one completed project(p.29)
- • BOT model results in intangible assets rather than tangible assets on balance sheet(p.24)
- • Significant project cost overruns on flagship project (203.86% escalation)(p.23)
- • Negative cash flows from operations in recent periods(p.31)
- • High dependence on promoter loans creating refinancing risk(p.27)
- • Unregistered trademark and brand creating IP vulnerability(p.29)
- • Negative earnings and returns with consistent losses across all periods(p.73)
- • Significant outstanding unsecured loans from promoters and related entities(p.70)
- • High debt-to-equity ratio with substantial borrowings relative to equity(p.70)
- • Revenue significantly declined post-project completion with operations severely impacted(p.89)
- • Business operations have been shut due to COVID-19 pandemic since its onset(p.89)
- • NAV significantly below offer price indicating valuation concerns(p.74)
- • Accumulated losses reducing net worth; negative retained earnings(p.141)
- • High financial leverage with debt-to-equity ratio of 9.36x(p.151)
- • Significant dependence on a single project location (Saptashrungi Gad temple)(p.154)
- • Massive ongoing operating losses despite revenue generation(p.135)
- • Minimal cash reserves and negative operating cash flows(p.159)
- • High intangible asset concentration with limited tangible asset base(p.134)
- • Global cable car and ropeway market projected to reach $7 billion by 2027 (9.8% CAGR)(p.18)
- • Nashik positioned as India's third industrial hub with high infrastructure development potential(p.18)
- • Government focus on infrastructure development through BOT models(p.26)
- • Leverage successful first project execution to bid for religious infrastructure projects(p.23)
- • Diversification into ancillary services (hotels, parking, shopping mall) for revenue expansion(p.18)
- • Government focus on infrastructure development with ₹233,083 crore allocated for transport infrastructure(p.83)
- • Funicular ropeways bring under Ministry of Road Transport and Highways jurisdiction with policy support(p.86)
- • Huge untapped potential for ropeways in India with only 22 successful projects versus thousands globally(p.86)
- • Growth in tourism sector with projected employment reaching 53 million by 2029(p.87)
- • Global cable cars and ropeways market projected to grow at 9.8% CAGR reaching $7 billion by 2027(p.85)
- • Expansion opportunities in multiple state governments across hilly and inaccessible terrains(p.86)
- • Strategic growth through BOT and PPP projects offering long-term revenue sources(p.91)
- • Expansion to construct similar funicular ropeway projects at other pilgrimage and tourist destinations(p.160)
- • Increased tourism to Saptashrungi temple, particularly during peak Navratri festival seasons(p.152)
- • Potential concession period extension by 3 years enhancing asset life and cash generation(p.138)
- • Recovery from COVID-19 pandemic restrictions to normalize visitor traffic and revenues(p.153)
- • COVID-19 pandemic causing complete operational shutdown with uncertain duration(p.22)
- • Seasonal fluctuations in devotee/tourist footfall affecting revenue stability(p.34)
- • Extreme weather and natural disasters disrupting operations(p.36)
- • Regulatory uncertainty and compliance risks across multiple jurisdictions(p.24)
- • Highly competitive infrastructure bidding environment with larger competitors(p.31)
- • Risk of accidents and operational hazards affecting reputation and business continuity(p.29)
- • Tender process delays and cancellation risks affecting project awards(p.27)
- • Macroeconomic downturn and reduced government infrastructure spending(p.26)
- • Interest rate volatility on floating-rate debt increasing financing costs(p.37)
- • Skilled labor shortage and wage inflation increasing operational costs(p.33)
- • Banking sector lending restrictions and credit facility recalls(p.32)
- • COVID-19 pandemic has shut all business operations with uncertain duration and financial impact(p.89)
- • High competition from large domestic infrastructure development companies(p.97)
- • Dependence on single project (Saptashrungi) with limited operational revenue generation(p.88)
- • Regulatory risks from multiple environmental and safety compliance requirements(p.102)
- • Government dependency risk with project allocated for fixed concession period until 2034(p.88)
- • Working capital constraints and reliance on promoter financing for project expansion(p.70)
- • COVID-19 pandemic disrupting operations and visitor footfall with uncertain recovery timeline(p.153)
- • Revenue severely impacted by operational shutdowns; declining from ₹1,319 lakhs (2020) to ₹447 lakhs (2021)(p.157)
- • Project delays historically caused by approvals, temple permissions, regulatory clearances(p.154)
- • Highly competitive infrastructure market with larger competitors having greater financial resources(p.154)
- • Weather-related risks including monsoon affecting operations at high-altitude project location(p.153)
- • Regulatory changes and stringent compliance requirements in BOT model operations(p.153)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Rajkumar Gurbaxani | Promoter | 19.86% | — |
| Mr. Omprakash Gurbaxani | Promoter | 19.14% | — |
| Mr. Shivshankar Lature | Promoter | 10.73% | — |
| Mr. Rajkumar Gurbaxani | Promoter | 19.86% | 15.05% |
| Mr. Omprakash Gurbaxani | Promoter | 19.14% | 14.37% |
| Mr. Shivshankar Lature | Promoter | 10.73% | 1.96% |
| Suyog Holdings Private Limited | Promoter Group | 13.16% | 12.37% |
| Ms. Subhshita Lature | Promoter Group | 5.48% | 3.84% |
| Mr. Suyash Lature | Promoter Group | 5.48% | 3.84% |
| Late Mr. Gurushantappa Lature | Promoter Group | 4.28% | 4.02% |
| Mr. Vivek Lature | Promoter Group | 2.35% | 2.21% |
| Mr. Arvind Lature | Promoter Group | 2.13% | 2.00% |
| Mrs. Suchitra Lature | Promoter Group | 1.54% | 1.00% |
| Mrs. Jyoti Gurbaxani | Promoter Group | 1.40% | 0.60% |
| Mrs. Veenu Gurbaxani | Promoter Group | 1.40% | 0.60% |
| Mr. Aditya Gurbaxani | Promoter Group | 1.07% | 1.01% |
| Mrs. Supriya Gurbaxani | Promoter Group | 1.07% | 1.01% |
| Ramling Nivruti Ghavle HUF | Promoter Group | 1.07% | 0.25% |
| O D Gurbaxani HUF | Promoter Group | 0.53% | 0.25% |
| R D Gurbaxani HUF | Promoter Group | 0.53% | 0.25% |
| Mr. Somnath Lature | Promoter Group | 0.39% | 0.36% |
| Mr. Rajkumar Gurbaxani | Promoter | 19.86% | — |
| Mr. Omprakash Gurbaxani | Promoter | 19.14% | — |
| Mr. Shivshankar Lature | Promoter | 10.73% | — |
| Shivshankar Lature | Promoter/Selling Shareholder | — | — |
| Omprakash Gurbaxani | Promoter/Selling Shareholder | — | — |
| Rajkumar Gurbaxani | Promoter/Selling Shareholder | — | — |
| Ms. Subhshita Lature | Promoter/Selling Shareholder | — | — |
| Mr. Suyash Lature | Promoter/Selling Shareholder | — | — |
| Mrs. Jyoti Gurbaxani | Promoter/Selling Shareholder | — | — |
| Mrs. Veenu Gurbaxani | Promoter/Selling Shareholder | — | — |
| Mrs. Suchitra Lature | Promoter/Selling Shareholder | — | — |
| R D Gurbaxani HUF | Promoter/Selling Shareholder | — | — |
| O D Gurbaxani HUF | Promoter/Selling Shareholder | — | — |
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.