Homesfy Realty Limited IPO

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i. Homesfy Realty Limited was incorporated on May 06 2011, headquartered in Thane, Maharashtra. They are engaged in providing real estate broking services to Real Estate Developers, retail buyers/sellers, and investors for residential and commercial space. They deal in newly constructed properties, whereby they assist the Real Estate Developers in selling and potential customers in purchasing the properties. They operate their business through direct selling from our in-house sales team and Direct Selling Agent listed on mymagnet platform for referral services.

ii. The company runs their brokerage business in name of Homesfy and is well partnered by mymagnet platform. They have grown with a proven track record and hence has enabled them to build customer service standards that drive the rapid and sustainable growth of mymagnet platform. They have more than 9 years of experience of enabling housing transactions through Homesfy. Such elaborate industry experience has provided us with distinct insights into market strategies, business conditions, developer’s need and customer expectations, which they believe are critical for the company to offer effective and practical solutions to rapidly growing property transaction market of India. Currently, the company generates 80.00% of its revenue via direct selling and the remaining 20.00% via mymagnet platform.

iii. Homesfy brokerage business is a combination of both offline and online presence allowing agents on our platform to effectively hone deeper market expertise, generate leads and win trust from customers.

iv. They provide real estate broking-related services through its website www.homesfy.in, prospect calling, and platforms like Google and Facebook. Their operating model is backed by strong expertise in lead generation backed by process-driven digital marketing expertise and automation. These leads are assigned to well-trained agents through its native CRM customized for scalable brokerage business which allows customers to quickly find the tangible touch points for speedy and efficient service delivery. The seamless integration of digitalized online operations and region-centric offline presence through its branch network. They also arrange property loans for the customers if required.

v. Their business model is defined by the majority of the revenue generated by their In-house team at Homesfy and rest though mymagnet tech based platform.

Developer Economics: They charge the Real Estate Developers commissions based on an agreed upon rate. Homesfy generates invoice and receive payments directly from the Real Estate Developers.

Revenue generated on mymagnet platform is shared between the Homesfy and the agent registered on mymagnet who has initiated the lead based on predetermined sharing arrangement.

Competitive Strengths

i. Highly experienced and stable management
ii. Long-standing relationships with a largest Developers in India
iii. Efficient Transaction Process

Objects of the Homesfy Realty Limited IPO:

The objects of the Issue are: 1) Working Capital requirements of the Company. 2) To meet Issue Expenses. 3) General Corporate Purpose.
DRHP of Homesfy Realty Limited IPO
RHP of Homesfy Realty Limited IPO

Homesfy Realty Limited IPO Details:

Open Date: Dec 21 2022
Close Date: Dec 23 2022
Total Shares: 805,200
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 15.86 Cr.
Lot Size: 600 Shares
Issue Price: ₹ 197 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 02 2023

Promoters And Management:

i. Mr. Ashish Kukreja is the Managing Director of the Company. He is also the founder of Homesfy.in and mymagnet.io, two platforms, that are poised to revolutionize the real estate sector. With an MBA in Finance from ICFAI, Hyderabad, Ashish has over 17 years of experience leading teams in real estate brokerage as well as the private wealth management. Ashish started Homesfy in 2011 to simplify the home buying process and make the real estate transaction reliable, trustworthy, and hassle-free. He saw chaos and believed that it was an opportunity to build something better and fill the gap between developers, advisors, and home buyers. He is currently working on the amalgamation of technology with top-notch services for the benefit of all stakeholders, giving them a plug-and-play solution. ii. Mr. Mukesh Mishra is the Executive Director at Homesfy. Before starting with Homesfy, Mukesh oversaw sizable teams at prestigious financial institutions like HDFC Bank. Mukesh is a result-oriented person who is likely to be excited about projects that are ground breaking. He is decisive, energized by ideas, and has a keen eye for details. He is innovating the sales process with leading technology to move from customer satisfaction to customer delight. He is an undergraduate from Gorakhpur, Uttar Pradesh. iii. Mr. Sachin Tagra is the Independent Director of Company. He is the Partner at JSW Ventures, an early stage tech focussed VC fund. Mr. Sachin Tagra has done his Post-Graduation Diploma in Business Management from Sri Sringeri Sharada Institute of Management, New Delhi. Before joining JSW Ventures, he was leading Capital18, media & venture investment division of Network18 group. He had also set up the early stage investment model of Brand Capital, Times Group and has been investing in start-ups since 2014. Prior to the investing domain, Sachin has driven P&Ls of large businesses in consumer, retail and media sectors with large corporates including Reliance Retail, Times Group, The Friedman Group US and have made significant contributions from the start-up phase to scaling up.

Financials of Homesfy Realty Limited IPO:

 
Particulars (Fig.In Lakhs) 2022 2021 2020
Revenue from Operations 3031 1473 1190
Employees Benefits Expenses 1274 661 503
Other Expenses 1311 543 553
EBITDA 446 269 134
OPM% 14.71% 18.26% 11.26%
Other Income 9 3 3
Depreciation 4 4 6
Finance Cost 1 1 2
PBT 450 267 129
Tax 132 68 38
PAT 318 199 91
No. of Shares 30.55 30.55 30.55
EPS 10.4 6.5 3.0

Comparison With Peers:

There is no listed company related to such business.

Recommendation on Homesfy Realty Limited IPO:

Review and Recommendation of Homesfy Realty Limited SME IPO is 5/10 1. On May 6, 2011, Homesfy Realty Limited was established, with its headquarters in Thane, Maharashtra. They work with investors, retail buyers and sellers, and real estate developers to provide real estate broking services for residential and commercial space. They have more than 9 years of expertise utilising Homesfy to facilitate real estate transactions. 2. They deal in new constructed properties. Homesfy's brokerage business combines offline and online presence, giving their platform's agents the ability to successfully develop deeper market understanding, create leads, and gain the confidence of clients. 3. They help real estate developers market their homes and potential buyers buy them. They run their business via referral services provided by their in-house sales team and direct selling agents listed on the my-magnet platform. 4. They have developed and are currently maintaining a network of 7 offices spread across Mumbai, Pune, Noida, and Bangalore. These offices are mostly involved in the company's sales, marketing, and payment collection efforts. 5. Currently they have generated 80.00% of their revenue via direct selling and remaining 20.00% via my-magnet platform. 6. They have generated maximum revenue from mumbai of 24 Crs. in FY2021-2022. 7. Revenue has increased from 11 Crores in Fy20 to 30 Crores in Fy22. 8. EBITDA has increased from 1 Crore in Fy20 to 4 Crores in Fy22. 9. PAT has increased from 91 Lakhs in Fy20 to 3.18 crores in Fy22 10. EPS of Fy22 is 10.42 , Market Capitalization is 60 crores so, P/E of IPO is 18.

Lead Manager of Homesfy Realty Limited IPO:

  1. Sarthi Capital Advisors Private Limited

Registrar of Homesfy Realty Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Homesfy Realty Limited 1602, 16th Floor, Dev Corpora Near Cadbury Junction, Thane-400601, Maharashtra Phone: +91 22 4971 0264 Email: cs@homesfy.in Website: https://www.homesfy.in/

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