Justo Realfintech Makes Weak Debut with 1.57% Discount, Lists at ₹125.00 Against Moderate Subscription

Justo Realfintech Limited, the full-service real estate mandate company operating across Maharashtra, made a disappointing debut on BSE SME on October 1, 2025. After closing its IPO bidding between September 24-26, 2025, the company commenced trading with a marginal discount opening at ₹126.90 but declined to ₹125.00 with losses of 1.57%, reflecting cautious investor sentiment towards the real estate services sector despite moderate subscription response.

Justo Realfintech Listing Details

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Justo Realfintech Limited launched its IPO at ₹127 per share with a minimum investment of 2,000 shares costing ₹2,54,000. The IPO received moderate response with a subscription of 4.57 times - individual investors at modest 2.10 times, NII at solid 6.81 times, and QIB at strong 7.21 times, indicating better institutional confidence in the real estate mandate business compared to relatively subdued retail participation.

First-Day Trading Performance Outlook

• Listing Price: Justo Realfintech share price opened at ₹126.90 representing a marginal discount of 0.08% from the issue price of ₹127, but declined to ₹125.00, delivering losses of 1.57% for investors reflecting cautious market sentiment towards real estate services sector.

Growth Drivers and Challenges

Growth Drivers:

• Comprehensive Real Estate Services: Full-service mandate model offering advisory, sales strategy, marketing, CRM, and financing solutions managing complete customer journey from inquiry to transaction, enabling developers to focus on approvals and property development.
• Strong Track Record and Pipeline: Helped developers sell projects worth ₹8,150 crore covering 11,250 units as of March 2025, with active mandates for 37 projects and order book worth ₹4,149.56 crore as of August 2025 ensuring revenue visibility.
• Impressive Financial Performance: Outstanding PAT growth of 127% to ₹15.21 crore and revenue growth of 37% to ₹81.64 crore in FY25, exceptional ROE of 38.84%, strong ROCE of 44.18%, and impressive PAT margin of 18.63% demonstrating operational excellence.

Challenges:

• Sector Cyclicality Concerns: Marked setback in FY24 reflecting sensitivity to real estate sector trends and cyclical nature of business, with revenue volatility between FY23-FY25 raising concerns about sustainability of growth trajectory.
• Moderate Listing Performance: Weak debut with 1.57% discount and modest retail subscription of 2.10 times reflecting investor caution about valuation sustainability and concerns over real estate sector headwinds affecting business momentum.
• Full Valuation Metrics: Post-issue P/E of 15.69x and price-to-book value of 3.42x reflecting premium valuation requiring sustained high growth to justify pricing amid competitive real estate services landscape and sector cyclicality.

Utilisation of IPO Proceeds

• Working Capital Requirements: ₹36.50 crore for funding working capital requirements supporting business expansion, operational scale-up, and managing growing mandate portfolio across Pune, Mumbai, Nashik, Aurangabad, and Kolhapur markets.
• Technology Platform Development: ₹6.30 crore for investment in IT infrastructure and development of technological platform enhancing operational efficiency and strengthening custom-built integrated technology capabilities.
• Debt Reduction: ₹5.00 crore for repayment of portion of outstanding borrowings improving financial leverage, reducing interest burden, and strengthening balance sheet for sustainable growth.
• General Corporate Purposes: Supporting business operations, strategic initiatives, and expansion activities for sustained growth in competitive real estate mandate services segment.

Financial Performance of Justo Realfintech

• Revenue: ₹81.64 crore for FY25, showing impressive growth of 37% from ₹59.45 crore in FY24, reflecting strong market demand and successful business scaling in real estate mandate services.
• Net Profit: ₹15.21 crore in FY25, representing exceptional growth of 127% from ₹6.69 crore in FY24, indicating substantial operational leverage and significant margin expansion benefits despite sector headwinds in FY24.
• Financial Metrics: Exceptional ROE of 38.84%, strong ROCE of 44.18%, moderate debt-to-equity ratio of 0.32, impressive PAT margin of 18.63%, solid EBITDA margin of 26.33%, and estimated market capitalisation of ₹234.98 crore.