Modi’s Navnirman Limited IPO

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i. The Modi Group is an established Mumbai-based group having its presence in the construction industry for more than a decade. The group was founded by the promoter Mr. Dineshkumar Modi in the year 2009. In the years following its inception, the group concentrated on developing affordable housing in the residential segment. Modi Group has so for constructed 7 residential and commercial projects

ii. The company has currently Ongoing and Upcoming projects, which they expect to provide an estimated total Carpet Area of 5.88 Lakhs square feet.

iii. All of their Completed, Ongoing and Upcoming projects are located in Mumbai. Further, most of their project names begin with the word “Rashmi” (such as “Rashmi Sadhna”, “Rashmi Sheela” “Rashmi Terrace”, etc) which differentiates the projects from the projects of the other developers in Mumbai. The term “Rashmi”, has become Synonymous with their 81 Company

iv. Competitive Strengths:

  • Experienced Management Team.
  • Established brand and reputation.
  • Proven execution capabilities.
  • Strong project pipeline providing cash flow visibility

Objects of the Modi’s Navnirman Limited IPO:

The Company proposes to utilize the Net Proceeds: 1. Investment in the subsidiary company – SMNPL for Repayment of its outstanding unsecured loans; 2. General Corporate Purpose
DRHP of Modi’s Navnirman Limited IPO
RHP of Modi’s Navnirman Limited IPO

Modi’s Navnirman Limited IPO Details:

Open Date: Jun 23 2022
Close Date: Jun 28 2022
Total Shares: 1,260,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 22.68 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 180 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 06 2022

Promoters And Management:

i. Dineshkumar Modi, aged 63 years is the founding Promoter of the Company and is designated as Chairperson and Managing Director on the Board of the Company. He was appointed on the Board of the Company since incorporation. He has completed his S.S.C. in March, 1975 from Nagar Panchayat Higher Secondary School. He has been a real estate investor since 1999-2008 and then entered into the realm of being a developer since 2009 under the proprietary concern M/s Modis Nirman. He has around two decades of experience in the Real Estate & Construction Industry. Over the years he has built an impeccable reputation in the real estate industry. The expertise and experience of Dineshkumar Modi in the real estate industry helps in the formulation of the policies of the Company and he provides his valuable guidance on all strategic matters. ii. Mahek Modi, aged 29 years is the Whole Time Director of the Company. He was appointed on the Board of the Company since incorporation. He has completed his Bachelor of Commerce in Accounting & Finance & Masters from Mumbai University in the year 2014 and 2016 respectively. He has completed his post graduate diploma in Financial Management from Mumbai University in the year 2017. He joined the family business in the year 2015. Currently, He mentors and heads dynamic team of enthusiastic designers, engineers and liasoning consultants. He is also responsible for chairing meetings with architects, Business Consultants, contractors and surveyors. iii. Rashmi Modi, aged 61 years is the Whole Time Director of the Company. She is appointed on the Board of the Company as a Whole Time Director w.e.f. March 14, 2022. She has completed her B.A. in Economics from Women’s university Bombay in the year 1983. As the Whole Time Director, she is responsible for the charitable and administration tasks of the Company and also is an integral part of decision making process in consultation with the Board.

Financials of Modi’s Navnirman Limited IPO:

Particulars (in Lakhs) Mar-22 Mar-21 Mar-20
Sales 1,125 1,322 2,194
Cost of Materials Consumed 2,757 369 1,387
Change in Inventories -2,061 687 505
Employee Benefits Expense 125 95 26
Other Expenses 141 113 57
Operating Profit 163 58 219
OPM % 14.49% 4.39% 9.98%
Other Income 26 0.58 1.42
Finance Cost 1.42 6.21 25.83
Depreciation 0.28 0.03 0
Profit before tax 187 51 194
Total Tax Exps 54.23 13.31 53.87
Net Profit 133 38 140
NPM % 11.82% 2.87% 6.38%
No. of shares 42.30 42.30 42.30
EPS 3.14 0.90 3.31

Comparison With Peers:

Name of the Company Sales (In Cr.) PAT (In Cr.) EPS PE RoCE Mcap (In Cr.) Returns 3Y Sales Growth (3Y)
Modi’s Navnirman Ltd 11 1.33 3.14 57.32 5.86% 76 - -48%
Arihant Superstructures Ltd. 124 13 3.28 38.1 4.47% 514 127% -48%
KBC Global Ltd 102 17 0.28 12.5 17.20% 217 -10% -3%
Vascon engineers Ltd 653 36 1.65 12 6.90% 432 19% 25%

Recommendation on Modi’s Navnirman Limited IPO:

Reviews and Recommendations of Modi Navnirman Limited IPO by IZ Team is 3/10 1. The Modi Group is an established Mumbai based group having its presence in the construction industry for more than a decade. The group was founded by the promoter Mr. Dineshkumar Modi in year 2009. 2. Modi Group has so for constructed 7 residential and commercial projects in the western suburbs of Mumbai specifically in and around the areas of Borivali, Kandivali, Malad and Goregaon. And, 5 projects are under construction which have total carpet area of 1,91,000 Sq. feet. If we consider 1000 as average flat size, the total number of flat under construction are 191. 3. The company recognises revenue on sale of real estate units on transfer of significant risks & rewards of ownership to buyers. The revenue is recognised based on percentage completion method. 4. Revenues are declining over the years. In Fy20, they had 21 Crores in Profit and now, 11 Crores in Fy22. 5. Asking P/E of 57x looks over priced.

Lead Manager of Modi’s Navnirman Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Modi’s Navnirman Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Modi's Navnirman Limited Shop No. 5, CTS 947/A, Rashmi Tara Datta Mandir, Kandivali (West), Mumbai- 400067 Phone: 98199 89100 Email: info@modisnirman.com Website: https://modisnirman.com/

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