Veer Global Infraconstruction SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2020 – 09 Oct 2020
- Listing date
- 19 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹28 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹4.92 Cr
- Promoter holding
- 20.34% → 29.69% pre-issue → post-issue
- ISIN
- INE244W01010
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Capital Square Advisors Pvt.Ltd.
- Registered office
- Shop No 47 Shalibhadra Regency Shalibhadra Nagar,, 100 Feet Road, Behind Union Bank, Nalasopara (E), Thane, 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 | 92,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹28
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 32,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 36,000 | ₹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 |
|---|
About Veer Global Infraconstruction SME
Veer Global Infraconstruction Limited was incorporated on January 11, 2012 in Maharashtra as a public limited company under the Companies Act, 1956. The company is a real estate developer with over 9 years of experience primarily focused on developing residential projects in the low-income affordable housing segment in Vasai-Virar and Palghar district. As of the date of filing the Draft Prospectus, the company has completed 5 residential projects and has 7 ongoing projects. The company acquires land through development rights arrangements with landowners and through direct ownership, obtains requisite approvals, constructs residential buildings comprising primarily 1 BHK flats and ground-floor shops, and sells these units to customers. The company follows a pre-sale model whereby it receives a percentage of the purchase price as down payment at booking and the remainder through periodic payments linked to construction milestones. Its registered office is located at Shop No 47 Shalibhadra Regency Shalibhadra Nagar, Nalasopara (E), Thane, Maharashtra.
Company Analysis
from DRHPVeer Global Infraconstruction Limited is a real estate developer focused on developing low-income affordable residential housing projects in the Vasai-Virar and Palghar district of Maharashtra.
Veer Global Infraconstruction Limited was incorporated on January 11, 2012 in Maharashtra as a public limited company under the Companies Act, 1956. The company is a real estate developer with over 9 years of experience primarily focused on developing residential projects in the low-income affordable housing segment in Vasai-Virar and Palghar district. As of the date of filing the Draft Prospectus, the company has completed 5 residential projects and has 7 ongoing projects. The company acquires land through development rights arrangements with landowners and through direct ownership, obtains requisite approvals, constructs residential buildings comprising primarily 1 BHK flats and ground-floor shops, and sells these units to customers. The company follows a pre-sale model whereby it receives a percentage of the purchase price as down payment at booking and the remainder through periodic payments linked to construction milestones. Its registered office is located at Shop No 47 Shalibhadra Regency Shalibhadra Nagar, Nalasopara (E), Thane, Maharashtra.
Objects of the Issue
- To Meet the Working Capital Expenses p.90
- General Corporate Purposes p.90
- To Meet the Issue Expenses p.90
Issue Structure
- Total Issue
- Up to 17,56,000 Equity Shares of ₹[●] each aggregating to ₹[●] Lakhs
- Fresh Issue
- Up to 17,56,000 Equity Shares
- Face Value
- ₹10.00
Business Model
The company develops affordable residential projects (primarily 1 BHK flats and shops) on land acquired via development rights or direct ownership, and earns revenue by selling these units to customers through a pre-sale model — receiving down payments at booking and milestone-linked payments during construction.
Business Segments
SWOT Analysis
- • Focus on and extensive experience in the low-income affordable housing segment(p.129)
- • Location advantage - projects in close vicinity of railway stations(p.129)
- • Significant experience of promoters in real estate(p.130)
- • Proven execution track record - 5 completed and 7 ongoing residential projects(p.122)
- • Low debt balance sheet model maintained since incorporation(p.130)
- • Most ongoing projects qualify for concessional 1% GST applicable to affordable housing(p.129)
- • Possession handed over to customers prior to obtaining Occupation Certificates(p.24)
- • Ongoing and planned projects may not be completed on time; completed projects faced delays in the past(p.25)
- • Geographic concentration of activities in Palghar district(p.26)
- • Outstanding litigation involving the Company, Promoters and Directors(p.27)
- • History of negative operating cash flows(p.35)
- • Subsidiary company (Veer Finance Ltd) incurred losses in the last three fiscals(p.35)
- • Unsecured loans that may be recalled by lenders at any time(p.39)
- • Promoters/Directors hold interests in similar ventures creating potential conflicts of interest(p.43)
- • Strengthen presence in low-income affordable housing segment backed by government efforts and end-user demand(p.130)
- • Supply-demand mismatch in affordable housing offers potential to expand to other geographies(p.130)
- • Low-debt balance sheet increases fund-raising capability for larger future projects(p.130)
- • Large structural demand gap - India needs 25 million more affordable housing units by 2030(p.110)
- • GST reduction on affordable housing projects supports the segment(p.120)
- • Housing loans included in priority sector lending improves buyer financing availability(p.114)
- • Listing to enhance brand name and shareholder liquidity(p.89)
- • Uncertain and unpredictable impact of the COVID-19 pandemic(p.23)
- • Competition from organized and unorganized players(p.32)
- • Penal consequences under RERA for non-compliance(p.29)
- • Heavily regulated real estate sector with changing laws and legal uncertainties(p.30)
- • Increases in raw material, labour and other input costs(p.30)
- • Changes in interest rates affecting borrowing costs and customer affordability(p.33)
- • Historical and potential future downturns in the real estate industry(p.45)
- • Dependence on availability of real estate financing amid difficult capital market conditions(p.39)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Vijaybhai Vagjibhai Bhanshali | Promoter | 27.01% | — |
| Mrs. Anita Bhanshali | Promoter | 11.76% | — |
| Mr. Vinod Mohanlal Jain | Promoter | 17.11% | — |
| Mr. Mukesh Chunilal Jain | Promoter | 5.42% | — |
| Mr. Abhishek Mukesh Jain | Promoter | 1.51% | — |
| Mr. Priyank Chandrakant Parikh | Promoter | 2.26% | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.