Reet Projects IPO is the proposed SME initial public offering of Reet Projects Limited, a Gujarat-based real estate development and construction company. The company was originally formed as the partnership firm M/s Orbit Corporation in 2014 and was subsequently renamed M/s Reet Projects before being converted into Reet Projects Limited on March 31, 2023. The company focuses on real estate development, residential and commercial plotting, construction of row houses and bungalows, and residential, commercial and industrial projects.
According to the company’s Draft Prospectus, Reet Projects IPO is a 100% Fixed Price SME Issue comprising up to 17,84,000 equity shares of face value ₹10 each at an issue price of ₹30 per equity share. The total issue size is ₹5.35 crore. Of the total issue, 96,000 equity shares worth ₹28.80 lakh are reserved for the Market Maker, leaving a Net Issue of 16,88,000 equity shares aggregating to ₹5.06 crore.
The proposed equity shares are to be listed on the SME Platform of BSE Limited. The company had received in-principle approval for the proposed BSE SME listing. The IPO opening date, closing date, allotment date and listing date are not available in the current offer document and therefore remain blank below.
Table of Contents
Reet Projects IPO Details Information
The Reet Projects IPO details below are based primarily on the company’s Draft Prospectus filed with BSE. The issue is structured as a Fixed Price Issue and does not include an Offer for Sale component.
| Particulars | Information |
|---|---|
| IPO Name | Reet Projects IPO |
| Company Name | Reet Projects Limited |
| IPO Type | Fixed Price Issue |
| IPO Category | BSE SME IPO |
| Face Value | ₹10 Per Equity Share |
| Issue Price | ₹30 Per Equity Share |
| Price Band | ₹30 Per Equity Share |
| Issue Size | ₹5.35 Crore |
| Fresh Issue | 17,84,000 Equity Shares |
| Offer for Sale | Nil |
| Market Maker Reservation | 96,000 Equity Shares |
| Net Issue | 16,88,000 Equity Shares |
| IPO Open Date | |
| IPO Close Date | |
| Anchor Investor Bidding | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date | |
| Listing Exchange | BSE SME |
| Lot Size | |
| Registrar | KFin Technologies Limited |
| Book Running Lead Manager | Fedex Securities Private Limited |
| Market Maker | |
| Issue Price / Face Value | 3.0 Times |
The issue price of ₹30 represents a premium of ₹20 over the ₹10 face value. The total issue of 17,84,000 shares represents the proposed public issue, while 96,000 shares are reserved for the market maker.
Reet Projects IPO Dates
The final IPO bidding schedule has not been announced in the available Draft Prospectus.
| IPO Event | Date |
|---|---|
| Anchor Investor Bidding | |
| IPO Opening Date | |
| IPO Closing Date | |
| Basis of Allotment | |
| Refund Initiation | |
| Shares Credited to Demat Account | |
| Listing Date |
The Draft Prospectus contains placeholders for the issue opening and closing dates. Current IPO information pages also show the dates as unavailable.
Reet Projects IPO Reservation
Reet Projects IPO is a Fixed Price SME Issue. Under the issue structure disclosed in the Draft Prospectus, 96,000 equity shares are reserved for the Market Maker. From the Net Issue, at least 50% is to be allocated to Retail Individual Applicants, while the balance is available to individual applicants other than Retail Individual Applicants and other eligible investors, including QIBs and NIIs, subject to the applicable rules and valid applications.
| Investor Category | Reservation |
|---|---|
| Market Maker | 96,000 Equity Shares |
| Retail Individual Investors | Minimum 50% of Net Issue |
| Other Investors / NII / QIB | Balance of Net Issue |
| Anchor Investors | |
| Total Issue | 17,84,000 Equity Shares |
The Draft Prospectus specifically states that if demand from Retail Individual Applicants is below 50%, the unsubscribed portion may be added to the non-retail portion, and vice versa, subject to valid applications.
Reet Projects IPO Lot Size
The final application lot size is not available in the currently accessible issue information.
| Application | Shares | Amount |
|---|---|---|
| Retail Minimum | ||
| Retail Maximum | ||
| HNI Minimum | ||
| HNI Maximum |
The issue price is fixed at ₹30 per equity share, but the minimum number of shares that investors can apply for has not been disclosed in the available current IPO schedule.
About Reet Projects
Reet Projects Limited is a real estate development and construction company based in Gujarat. The business originally operated as a partnership firm named M/s Orbit Corporation, established through a partnership deed dated April 29, 2014. The partnership was subsequently reconstituted and renamed M/s Reet Projects on February 16, 2023, before being converted into Reet Projects Limited on March 31, 2023.
The company is primarily involved in developing and constructing residential and commercial real estate projects. Its business activities include residential and commercial plotting, construction of row houses and bungalows, and development of residential, commercial and industrial buildings. The company has primarily focused on projects in the Bharuch district of Gujarat.
Reet Projects also develops projects on land held as stock-in-trade and may enter into arrangements for project management, marketing and branding development services. The company has historically generated revenue through sale of plots, construction work and sale of row houses.
Business Operations
The company’s business activities include:
- Residential real estate development.
- Commercial real estate development.
- Residential plotting.
- Commercial plotting.
- Development and sale of plots.
- Construction of row houses.
- Construction of bungalows.
- Residential building construction.
- Commercial building construction.
- Industrial building construction.
- Project management services.
- Marketing and branding development services.
- Development of land held as stock-in-trade.
The company’s historical revenue disclosure shows income from sale of plots, construction work and sale of row houses. In FY2023, revenue from operations was ₹80.51 lakh, while the earlier partnership business had generated revenue from these activities before conversion into the public company.
Industry Overview
The Indian real estate industry is an important contributor to economic activity and is supported by demand for residential housing, commercial properties, infrastructure and industrial development. Real estate developers are exposed to local demand, land availability, financing conditions, construction costs and regulatory approvals.
For regional developers such as Reet Projects, the ability to acquire suitable land, obtain development approvals, complete projects on schedule and sell developed properties at profitable prices is particularly important. The company operates primarily in Gujarat, with historical activities concentrated around the Bharuch region.
Business Strategy
Reet Projects focuses on identifying land and developing residential and commercial projects according to market opportunities. The company has historically purchased land banks for future development and sale and has also undertaken construction and development activities on selected properties.
The company also intends to strengthen its working-capital position through the proposed IPO. The Draft Prospectus states that the proceeds are intended primarily for funding working-capital requirements and general corporate purposes.
Reet Projects IPO Financial Information
The historical financial information below is taken from the restated financial information disclosed in the company’s Draft Prospectus. The figures cover the partnership business for FY2021 and FY2022 and the company for FY2023, together with a short period ended June 15, 2023.
Reet Projects Financial Summary
| Particulars | FY2021 | FY2022 | FY2023 | Period Ended June 15, 2023 |
|---|---|---|---|---|
| Revenue from Operations | ₹1.59 Cr | ₹0.32 Cr | ₹0.81 Cr | ₹0.12 Cr |
| EBITDA | ₹0.02 Cr | ₹0.01 Cr | ₹0.13 Cr | ₹0.02 Cr |
| PAT | ₹0.01 Cr | ₹0.01 Cr | ₹0.09 Cr | ₹0.01 Cr |
| Total Assets | ||||
| Net Worth | ₹0.81 Cr | ₹0.41 Cr | ₹0.23 Cr | ₹4.96 Cr |
The company’s revenue from operations was ₹159.40 lakh in FY2021, ₹31.59 lakh in FY2022 and ₹80.51 lakh in FY2023. EBITDA increased from ₹1.51 lakh in FY2021 to ₹12.89 lakh in FY2023, while restated profit increased from approximately ₹0.52 lakh to ₹9.27 lakh.
The company reported a significant increase in equity during the period ended June 15, 2023. The restated accounting ratios show total equity of ₹495.63 lakh for the June 15, 2023 period and ₹22.87 lakh at March 31, 2023.
Reet Projects IPO Key Performance Indicators (KPIs)
The following KPI information is based on the restated accounting ratios and quantitative factors disclosed in the Draft Prospectus.
| KPI | FY2021 | FY2022 | FY2023 | Period Ended June 15, 2023 |
|---|---|---|---|---|
| ROE / RoNW | NA | NA | 40.55% | 0.25% |
| ROCE | 0.00% | 0.01% | 0.06% | 0.00% |
| PAT Margin | 0.33% | 1.72% | 11.52% | 10.57% |
| EBITDA Margin | 0.94% | 4.27% | 16.00% | 14.26% |
| Debt-to-Equity Ratio | 1.35 | 1.92 | 8.17 | 0.00 |
| EPS | ₹0.47 | |||
| NAV Per Share | ₹20.45 |
The Draft Prospectus reports RoNW of 40.55% for FY2023 and 0.25% for the short period ended June 15, 2023. The company also reported an EBITDA margin of 16.00% in FY2023 compared with 4.27% in FY2022 and 0.94% in FY2021.
The restated financial information shows that the company’s net profit margin increased from 1.72% in FY2022 to 11.52% in FY2023. The company attributed the improvement to better margins on sale of plots and constructed properties.
Objects of the Reet Projects IPO
The company proposes to use the net proceeds of the IPO primarily to strengthen its working-capital position and for general corporate purposes.
- Funding Working Capital Requirements.
- General Corporate Purposes.
- Meeting Issue-related expenses.
The proposed use of IPO proceeds is intended to support the company’s operating requirements and provide additional financial resources for its business activities.
Reet Projects IPO Listing Performance
Reet Projects Limited has not yet completed its proposed IPO listing.
| Particular | Value |
|---|---|
| Listing Exchange | BSE SME |
| Listing Date | |
| Issue Price | ₹30 |
| Listing Price | |
| Listing Gain | |
| Listing Gain (%) |
The Draft Prospectus proposes listing of the equity shares on the SME Platform of BSE Limited. No listing price or listing gain is available because the IPO has not yet completed its listing process.
Reet Projects IPO Subscription Status
The IPO has not yet opened for public subscription, so live subscription figures are not available.
Reet Projects IPO Subscription
| Investor Category | Subscription |
|---|---|
| Qualified Institutional Buyers (QIB) | |
| Non-Institutional Investors (NII) | |
| Retail Individual Investors (RII) | |
| Market Maker | |
| Total Subscription |
Subscription data will be updated once the IPO opens and valid applications are received.
Reet Projects IPO Review
Reet Projects Limited operates in the real estate development and construction sector, with a focus on residential and commercial projects in Gujarat. Its activities include plotting, construction of row houses and bungalows, and development of residential, commercial and industrial properties. The company has also historically maintained land as stock-in-trade for future development and sale.
The historical financial information in the Draft Prospectus shows that revenue from operations increased from ₹31.59 lakh in FY2022 to ₹80.51 lakh in FY2023. Profit also increased substantially, with restated profit rising from ₹0.54 lakh in FY2022 to ₹9.27 lakh in FY2023. EBITDA increased from ₹1.35 lakh to ₹12.89 lakh during the same period.
At the same time, real estate development involves significant risks relating to land acquisition, title, project execution, approvals, labour availability, construction costs and property demand. Investors should also consider that the available IPO document is historical and that the final issue schedule, latest financial information and final listing details should be checked when the IPO is formally launched.
Reet Projects IPO Strengths
- Experienced promoters and management team.
- Experience in real estate development and construction.
- Presence in the Gujarat real estate market.
- Focus on residential and commercial projects.
- Experience in land development and plotting.
- Experience in construction of row houses and bungalows.
- Locational presence in the Bharuch region.
- Ability to undertake project management and development activities.
- Historical improvement in revenue from FY2022 to FY2023.
- Improvement in EBITDA margin.
- Improvement in PAT margin.
- Proposed IPO proceeds to strengthen working capital.
- Fixed issue price of ₹30 per equity share.
Reet Projects IPO Risk Factors
- Real estate development is dependent on successful acquisition of suitable land and development rights.
- Any uncertainty regarding title to real estate assets may adversely affect the business.
- Delays in project completion can affect revenue and profitability.
- The company is dependent on obtaining required approvals and permissions.
- Construction operations depend on availability of labour.
- Labour shortages or work stoppages may affect project execution.
- Construction costs can fluctuate.
- Real estate demand can vary according to economic conditions.
- The company’s operations are geographically concentrated.
- Changes in property regulations may affect operations.
- Working-capital requirements can be significant.
- The company operates in a competitive real estate market.
- There is no assurance that future projects will be completed on schedule.
- There is no assurance of an active or sustained market after listing.
- SME-listed shares can have comparatively lower liquidity.
- Investors should review the latest offer documents before investing.
Reet Projects IPO Promoters
The Draft Prospectus identifies Hardik Ajitbhai Desai, Kavita Hardik Desai and M/s Nirav Holdings as the promoters of Reet Projects Limited.
Reet Projects IPO Promoters Details
| Promoter | Category |
|---|---|
| Hardik Ajitbhai Desai | Individual Promoter |
| Kavita Hardik Desai | Individual Promoter |
| M/s Nirav Holdings | Corporate Promoter |
The promoter group and shareholding details should be reviewed against the latest offer document when the IPO moves to the final issue stage.
Reet Projects IPO Management Team
The company’s Draft Prospectus lists the following Board of Directors.
| Name | Designation |
|---|---|
| Hardik Ajitbhai Desai | Chairman and Managing Director |
| Kavita Hardik Desai | Executive Director |
| Reet Hardik Desai | Non-Executive Director |
| Nirav Manojkumar Desai | Non-Executive Director |
The Draft Prospectus identifies Hardik Ajitbhai Desai as Chairman and Managing Director, Kavita Hardik Desai as Executive Director, and Reet Hardik Desai and Nirav Manojkumar Desai as Non-Executive Directors.
The available corporate records have subsequently shown changes in the company’s board, so investors should refer to the latest company and offer documents for the final IPO management structure.
Reet Projects IPO Registrar Details
KFin Technologies Limited is appointed as the Registrar to the Issue. The registrar will be responsible for processing applications, maintaining issue records, allotment-related activities and refund/share-credit processes after finalization of the basis of allotment.
| Particular | Details |
|---|---|
| Registrar Name | KFin Technologies Limited |
| Contact Person | M Murali Krishna |
| Phone | +91 40 6716 2222 |
| [email protected] | |
| Website | www.kfintech.com |
| SEBI Registration No. | INR000000221 |
| IPO Allotment Status |
The registrar’s address disclosed in the Draft Prospectus is Selenium Tower-B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500032, Telangana, India.
Reet Projects IPO Lead Manager Details
Fedex Securities Private Limited is the Lead Manager to the proposed Reet Projects IPO.
| Particular | Details |
|---|---|
| Lead Manager | Fedex Securities Private Limited |
| Contact Person | Saipan Sanghvi |
| Phone | +91 81049 85249 |
| [email protected] | |
| Website | www.fedsec.in |
| SEBI Registration No. | INM000010163 |
| Investor Grievance Email | [email protected] |
The lead manager’s registered address disclosed in the Draft Prospectus is B-7, 3rd Floor, Jay Chambers, Dayaldas Road, Vile Parle East, Mumbai – 400057, Maharashtra.
Reet Projects Contact Details
| Particular | Details |
|---|---|
| Company Name | Reet Projects Limited |
| CIN | U41001GJ2023PLC139730 |
| Registered Office in IPO Document | Shop No. 327, Third Floor, Ishana The Business Hub, Althan, Surat City, Surat – 395017, Gujarat |
| Current Registered Address in Public Records | Unit No. 28, Block No. 400, Next to Zinnia, Vagra, Bharuch, Gujarat – 392165 |
| Phone | +91 99 9866 5650 |
| [email protected] | |
| Website | www.reetprojects.com |
| IPO Contact Person | Poorvi Jain |
| Company Secretary & Compliance Officer in DRHP | Poorvi Jain |
The company’s Draft Prospectus identifies the Surat address, phone number, email and website, while more recent public corporate records show the registered office at Vagra, Bharuch, Gujarat.
Prospectus / Documents
| Document | Status |
|---|---|
| Draft Prospectus | Available |
| DRHP / Updated Draft Offer Document | |
| Red Herring Prospectus | |
| Prospectus | |
| Abridged Prospectus | |
| Annual Report | |
| Addendum / Corrigendum |
The publicly available BSE Draft Prospectus is dated December 14, 2023 and contains the proposed ₹5.35 crore fixed-price SME issue details. The document identifies BSE SME as the proposed listing platform and KFin Technologies and Fedex Securities as the registrar and lead manager respectively.
How to Check Reet Projects IPO Allotment Status
Investors can check Reet Projects IPO allotment status after the IPO closes and the basis of allotment is finalized. KFin Technologies Limited is the registrar to the issue.
Through KFin Technologies
- Visit the official KFin Technologies IPO allotment portal.
- Select Reet Projects IPO from the available issue list.
- Select the appropriate search option.
- Enter your PAN, application number or demat account details.
- Enter the required verification details.
- Submit the information.
- View your Reet Projects IPO allotment status.
Through BSE
- Visit the official BSE website.
- Open the IPO/allotment status section.
- Select Reet Projects IPO when the issue becomes available.
- Enter your application number or PAN details.
- Submit the information.
- Check the allotment status displayed on the screen.
The allotment status is currently unavailable because the IPO has not completed its subscription and allotment process.
Reet Projects IPO Conclusion
Reet Projects IPO is a proposed BSE SME Fixed Price Issue of ₹5.35 crore comprising 17,84,000 equity shares at an issue price of ₹30 per share. The issue includes a Market Maker Reservation Portion of 96,000 shares and a Net Issue of 16,88,000 shares. The company intends to use the proceeds primarily for working-capital requirements and general corporate purposes.
The company operates in real estate development and construction, with activities including residential and commercial plotting, construction of row houses and bungalows and development of residential, commercial and industrial properties. Its historical financial information showed revenue from operations of ₹80.51 lakh and restated profit of ₹9.27 lakh in FY2023.
The proposed IPO may provide the company with additional working capital and public-market visibility. However, investors should carefully assess the company’s project pipeline, land-title position, execution capabilities, financial performance, valuation and latest offer documents before making an investment decision. The final IPO dates, lot size, subscription figures and listing information should be added once officially announced.
Reet Projects IPO FAQs
What is Reet Projects IPO?
Reet Projects IPO is the proposed SME initial public offering of Reet Projects Limited, a real estate development and construction company based in Gujarat.
What is the Reet Projects IPO issue size?
The proposed issue size is ₹5.35 crore comprising 17,84,000 equity shares at ₹30 per share.
What is the Reet Projects IPO price?
The fixed issue price is ₹30 per equity share with a face value of ₹10 per share.
Is Reet Projects IPO a fresh issue or an OFS?
The proposed IPO is a fresh issue. There is no Offer for Sale component in the Draft Prospectus.
What is the Reet Projects IPO lot size?
The lot size has not been made available in the current IPO information.
When will Reet Projects IPO open?
The IPO opening date has not been announced.
Where will Reet Projects shares be listed?
The equity shares are proposed to be listed on the BSE SME platform.
Who is the registrar of Reet Projects IPO?
KFin Technologies Limited is the registrar to the Reet Projects IPO.
Who is the lead manager of Reet Projects IPO?
Fedex Securities Private Limited is the Lead Manager to the proposed IPO.
Who are the promoters of Reet Projects Limited?
The Draft Prospectus identifies Hardik Ajitbhai Desai, Kavita Hardik Desai and M/s Nirav Holdings as the promoters.
What does Reet Projects Limited do?
Reet Projects is engaged in real estate development and construction, including residential and commercial plotting, row houses, bungalows and residential, commercial and industrial projects.
What was Reet Projects’ revenue in FY2023?
Revenue from operations was ₹80.51 lakh in FY2023 according to the restated financial information in the Draft Prospectus.
What was Reet Projects’ profit in FY2023?
Restated profit for FY2023 was ₹9.27 lakh.
What are the objects of the Reet Projects IPO?
The proposed IPO proceeds are intended for funding working-capital requirements and general corporate purposes.
Is Reet Projects Limited listed?
No. Reet Projects Limited is currently unlisted, and the proposed IPO is intended to list its shares on BSE SME.
