Jaikumar Constructions Ltd IPO

Upcoming DRHP

IPO Synopsis

Details on IPO
Jaikumar Constructions, a real estate developer, has filed a DRHP with SEBI to raise funds via sale of shares. The issue is pure of sale of equity shares worth 79 lakhs equity shares with each share having a face value of Rs. 10.
The company, which filed draft papers with SEBI in June, obtained its observations on September 10.
Aryaman Financial Services and Galactico Corporate Services are the lead managers of the issue. Shares of the company are proposed to be listed on BSE and NSE.


Objective of the Issue
The net proceeds of the IPO will be used for: 
1.    development of phase 1 of residential project Parksyde Nest in Nashik
2.    further investment in subsidiary for part-financing the construction of “Parksyde Business Avenue” 
3.    repayment of outstanding unsecured loans 
4.    general corporate purposes
 

About Jaikumar Constructions Ltd

Jaikumar Constructions Limited, is a well-established real estate developer from Nashik operating under the name “Parksyde”. The company is promoted by Mr. Manoj Tibrewala and family who have a presence in the real estate sector for over two decades.
The firm and its subsidiary (JREPL) have constructed and delivered possession of approximately 6.93 lakhs sq. ft. and 4.50 lakhs sq. ft. of carpet area of residential units, respectively. Its ongoing residential projects includes 2 phases of Parksyde Homes & 1 commercial project under the subsidiary company namely Parksyde Business Avenue and the planned residential project includes 3 phases of Parksyde Nest, wherein it expects to provide an estimated total carpet area of 9.90 lakhs sq. ft. (i.e. 13.31 lakhs sq. ft. of constructed area).
It has concentrated on developing luxury, yet affordable, housing in the residential segment and ventured into development of commercial projects in Nashik. The firm has an established reputation and a track record of developing eco-friendly and luxurious projects through its emphasis on maximum compliance, contemporary architecture, modern amenities, strong project execution and quality construction in the real estate industry.
 

Financials

 

Particulars (in Rs. Crores)

FY19

FY18

FY17

Revenue

151.54

65.38

84.57

EBITDA

13.06

21.36

14.69

PAT

12.77

8.90

10.44

EPS (basic in Rs.)

6.79

17.8

20.88

ROE

63.85%

178.00%

208.83%

 

Particulars (in Rs. Crores)

FY19

FY18

FY17

Total Assets

95.40

144.32

124.51

Share Capital

20.00

5.00

5.00

Total Borrowings

7.09

11.69

27.05

 

Particulars (in Rs. Crores)

FY19

FY18

FY17

Net cash generated from / (used in) operating activities

-2.38

13.63

0.75

Net cash from / (used in) investing activities

0.03

0.79

-1.19

Net cash flow from / (used in) financing activities

1.93

-14.82

0.67

Net increase (decrease) in cash and cash equivalents

-0.41

-0.40

0.23

 

 

Peer Comparison

Name of the company

Basic EPS

NAV Rs. per share

PE

RoNW %

Jaikumar Constructions Limited

6.79

10

NA

63.73%

Kolte-Patil Developers Limited

10.47

104.03

14.02

10.06%

Arihant Superstructures Limited

0.59

27.68

29.66

2.12%

Prestige Estates Projects Limited

7.71

113.33

17.81

6.80%

Karda Constructions Limited

9.78

76.62

15.54

12.83%


The key points are-

IPO Key Points

  • Strengths

    1.    Cash flow visibility through ongoing and planned projects & land reserves
    2.    Ability to create projects which redefine the surrounding geography and create value
    3.    Prominent presence in Nashik 
    4.    Established name and reputation
     

  • Risks

    1.    The company, its directors, its promoter and its subsidiary are parties to certain legal proceedings
    2.    Failure to obtain, retain and renew such approvals and licences in timely manner or comply with certain rules and regulations or at all
    3.    Operations and sales generation come from one location
    4.    failure on third party’s part to perform their obligations as service providers and contractors to execute various parts of the projects
    5.    Availed Rs. 2,148.71 lakhs as unsecured loan which are repayable on demand
    6.    May not be able to successfully identify and acquire suitable land or development rights as they have only a limited undeveloped land bank for any future developments
     

How to apply for IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked