Veegaland Developers
IPO Size: Rs. 210 cr, entirely Fresh Issue
- Rs. 119 cr for funding ongoing projects
Price band: Rs. 130-140 per share
M cap: Rs. 683 cr (31% dilution)
IPO Date: Thu 10th Sep to Tue 15th Sep 2026, Listing Fri 18th Sep 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Kerala-based Real Estate Company
Veegaland Developers, part of V-Guard Industries Group, is a 20-year-old Ernakulam-based real estate company, engaged in residential projects in Kochi, Thiruvananthapuram, Kozhikode and Thrissur in Kerala, mainly across the premium and ultra-premium segments. As of 30.6.26, it has completed 10 projects with 11.1 lakh sq ft saleable area, and has 12 ongoing projects with 18.6 lakh sq ft saleable area and 3 upcoming projects of 4.6 lakh sq ft area.
Mediocre Financials
FY26 sales volume rose just 5% YoY to 4.9 lakh sq ft, despite the real estate boom pan-India, with booking value or pre-sales of about Rs. 400 cr and average realization of Rs. 8,000 per sq. ft. On FY26 revenue of Rs. 251 cr, EBITDA stood at Rs. 39 cr, implying EBITDA margin of 15%, which is in-line with peers. Since company’s debt is low, at Rs. 85 cr as of 31.3.26, PAT stood at Rs. 27 cr, translating into a healthy net margin of 10.6%. For FY26, EPS stood at Rs. 8.8.
Post promoter infusion of Rs. 175 cr, via a rights issue in Aug 2025, net worth has risen to Rs. 267 cr, as of 31.3.26. RoE is likely to slip from 16% in FY26 to single-digit going forward, due to the massive 31% dilution via the IPO.
Small Market Size
The residential home market size in Kerala was roughly Rs. 2,800 cr in FY26, with the 4 cities, where Veegaland has presence in, being less than Rs. 2,000 cr. Thus, company’s operation are limited to a very small geography, with has presence of both organized and unorganized players.
Fully Priced IPO
Market cap of Rs. 683 cr and enterprise value (EV) of Rs. 734 cr lead to a historic EV/EBITDA multiple of 18.7x and EV/booking value of 1.9x. This is fully priced for the small scale of operations limited to a single state and likely contraction in RoE going forward, despite a strong promoter backing.
Peer Shriram Properties, operating at average realization of Rs. 5,700 per sq ft, 13% EBITDA margin and a strong parentage, is trading at EV/EBITDA of 10.6x and EV/booking value of 1.0x. Thus, Veegaland’s IPO pricing does not leave anything on the table for prospective investors.
