Samor Reality Limited IPO

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Incorporated in 2014, In this dynamic and extremely competitive business environment, the company has developed projects catering to the middle-income and high-income groups. Currently, their business focuses on residential apartments developments. Its residential buildings are designed with a variety of amenities such as security systems, sports, and recreational facilities, play areas, and electricity backup.

Further, the Company is currently focusing on opportunities to build a brand in real estate sector. The customers of the company have been highly appreciative of the developmental activities carried out by the Company and its promoter group entities, particularly with regards to the speed of execution, flexibility, and property management services.

The company’s projects are marketed under the brand name of “Samor” such as Samor Heights.

Competitive strengths
i. Experienced Management Team
ii. Established brand and reputation
iii. Operation methodology

Objects of the Samor Reality Limited IPO:

The Issue includes a public Issue of 13,00,000 Equity Shares of our Company at an Issue Price of Rs. 62/- per Equity Share Net Proceeds from the Fresh Issue will be utilized towards the following objects: 1. Investment into our subsidiary namely M/s Samor & Motherland LLP (“SML”) 2. General Corporate Purpose 3. To Meet the Issue Expenses
DRHP of Samor Reality Limited IPO
RHP of Samor Reality Limited IPO

Samor Reality Limited IPO Details:

Open Date: Sep 30 2021
Close Date: Oct 05 2021
Total Shares: 1,300,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 8.06 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 62 Per Equity Share
Listing At: BSE SME

Promoters And Management:

i. Mr. Birjukumar Ajitbhai Shah, aged 46 years is the Promoter, Chairman, Managing Director, and CFO of the Company. He has completed a Bachelor of Commerce from Gujarat University in the year 1995. He has experience of over 11 years of in this real estate. ii. Mrs. Jagrutiben Birjubhai Shah, aged 43 years is the Whole Time Director of the Company. She has completed her matriculation in the year 1996. She was appointed on the Board of the Company upon the incorporation of the Company i.e. w.e.f. December 01, 2020, and was a partner in an erstwhile partnership firm since 2014. iii. Mr. Akshay Sevantilal Mehta, aged 49 years is the Non-Executive Director of the Company. He has completed his matriculation in the year 1987. He was appointed on the Board of the Company upon the incorporation of the Company i.e. w.e.f. December 01, 2020.

Financials of Samor Reality Limited IPO:

Particulars (in Lakhs) Mar 21 Mar 20
Revenue from operations 964.27 24
Project cost 22.8
Purchase of stock 955.54
Changes in inventories -21.14
Employee Benifit Expense 0.36
Other expenses 15.71 0.14
Operating Profit 13.8 1.06
OPM% 1.43% 4.42%
Other Income 0.18
Depreciation and amortisation 0.01
Profit before tax 13.97 1.06
Tax Expenses 3.52 0.45
Profit for the year 10.46 0.61
EPS 0.5 0.1

Comparison With Peers:

As per DRHP, company has shown comparison with Ratnabhumi Developers Ltd. The Peer company has revenue of just 4 Crores and currently, trading at P/E of 256.

Recommendation on Samor Reality Limited IPO:

Review and Recommendation of Samor Reality by InvestorZone is 1/10 1. They are into real-estate business and having turnover of just 9 Cr in FY21. The EBITDA margin in the business is abysmally low at 1.43% in FY21. 2. Company asking P/E of 256x, which is a joke. They are asking M.cap of 26 Crores when the sales of company is just 9 Crores. 3. Company has a negative cash flow in FY21 due to 2 Crores of "Loans and Advances" given to someone.

Lead Manager of Samor Reality Limited IPO:

  1. Beeline Broking Limited

Registrar of Samor Reality Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Samor Reality Limited FO F.401, Shop Atlantis, Near Reliance Pump, Prahladnagar Road, Anandnagar, Satellite, Ahmedabad, Gujarat – 3800 Phone: 079-4038-0259 Email: compliance@samor.in Website: https://samor.in/

Discussion on Samor Reality Limited IPO:

2 Comments

    Total Outstanding Shares Before IPO = 30,00,000
    Total Shares to be issued in IPO = 13,00,000
    Total Outstanding Shares after IPO = 43,00,000

    PAT = 10,00,000
    EPS = 0.232
    P/E = 62/0.23= 269x..

    Reply

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