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Technical / Industry / Business related terms
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- 4. Our revenues, profitability and return ratios fluctuate significantly over periods due to the project-
based and milestone-linked nature of our real estate development business, which may make period-
to-period comparisons difficult.
Our revenues from operations, profitability and return ratios have fluctuated across reporting periods and
may continue to vary in the future, which may make comparisons of our financial performance between
periods difficult. Our income in any particular period is dependent on several factors, including the
number, size and stage of completion of our development projects, the timing of execution of agreements
with customers, construction progress achieved during the relevant period, cost absorption levels and
prevailing market conditions.
Revenue from operations is recognised based on the fulfilment of performance obligations under
contracts with customers in accordance with Ind AS 115 and is linked to the percentage of completion
of construction activities. As a result, variations in construction timelines or the pace at which projects
progress through different execution stages may lead to material fluctuations in revenue recognised
during a particular period. For instance, our revenue from operations increased from ₹10,891.16 lakh in
Fiscal 2023 to ₹11,076.76 lakh in Fiscal 2024 and further to ₹19,237.53 lakh in Fiscal 2025. For the six-
month period ended September 30, 2025, revenue from operations amounted to ₹12,415.85 lakh,
representing approximately 64.54% of the revenue from operations for Fiscal 2025. These variations
would primarily reflect differences in construction progress and the stage of completion of projects
during the respective periods.
Our profitability has also fluctuated across periods due to changes in revenue recognition and estimated
project costs. EBITDA amounted to ₹2,421.98 lakh in Fiscal 2023, ₹1,672.23 lakh in Fiscal 2024 and
₹3,377.35 lakh in Fiscal 2025, and ₹1,891.56 lakh for the six-month period ended September 30, 2025.
These variations reflect changes in the mix of projects under execution, cost absorption levels during
different phases of construction and periodic revisions to estimated project costs.
Our PAT also varied across periods and stood at ₹1,453.06 lakh in Fiscal 2023, ₹786.88 lakh in Fiscal
2024 and ₹2,042.59 lakh in Fiscal 2025. PAT for the six-month period ended September 30, 2025 was
₹1,152.54 lakh. The moderation in PAT during Fiscal 2024 was primarily attributable to project-specific
factors such as stage of completion and sales momentum, while the increase in Fiscal 2025 reflects higher
revenue recognition from projects at more advanced stages of completion.
Our return ratios have similarly fluctuated. Return on Equity was 48.44% in Fiscal 2023, 19.12% in
Fiscal 2024 and 36.96% in Fiscal 2025, and 7.27% (not annualised) for the six-month period ended
September 30, 2025. Return on Capital Employed was 14.88% in Fiscal 2023, 9.85% in Fiscal 2024 and
13.75% in Fiscal 2025, and 6.21% (not annualised) for the six-month period ended September 30, 2025.
Movements in these ratios reflect changes in profitability, capital employed and equity base, as well as
the impact of capital deployment and construction progress across different stages of the project lifecycle.
Given the long gestation periods associated with real estate development and the progress-linked nature
of revenue recognition, our financial performance in any particular period may not be indicative of our
performance in future periods. Accordingly, our results of operations, cash flows and financial condition
may continue to vary significantly from period to period, and investors should not rely on period-to-
period comparisons as an indication of underlying trends in our business.
Page 49
- 5. We are subject to risks arising from increases in construction input costs, price volatility of key
materials and potential disruptions in supply chains, which may adversely affect project execution,
profitability, cash flows and financial condition.
As noted in the ICRA industry report, construction cost inflation remains a key structural challenge for
the real estate sector. Rising prices of construction materials and inputs may exert pressure on project
margins, particularly in circumstances where developers are unable to fully pass on such increases to
customers due to competitive intensity, affordability constraints or prevailing market conditions.
Our real estate development operations require substantial quantities of construction materials and inputs,
including steel, cement, ready-mix concrete, aluminium, aggregates, bricks and blocks, electrical and
plumbing materials, tiles and fittings, elevators, firefighting systems and other mechanical, electrical and
plumbing components. These materials are largely procured from third-party suppliers, vendors and
contractors. The prices and availability of such inputs are subject to factors beyond our control, including
inflationary trends, fluctuations in commodity prices, transportation and logistics costs, supply demand
dynamics, changes in government taxes and levies, regulatory developments and disruptions in domestic
or global supply chains.
Our ability to execute projects within estimated timelines and budgets is dependent on our ability to
procure construction materials at commercially reasonable prices and in the required quantities. We
generally do not enter into long-term fixed-price supply arrangements and typically procure materials
through purchase orders issued in line with construction schedules and prevailing market conditions.
While this procurement approach provides flexibility and allows us to source materials competitively, it
also exposes us to risks arising from price volatility and supply disruptions.
Any inability or delay on the part of our suppliers to deliver materials in a timely manner, or any
disruption in logistics or supply chains, could adversely affect construction schedules. Such events may
result in delays in project execution, cost overruns, deferment of revenue recognition and adverse impacts
on our cash flows and financial condition. Further, any increase in duties, taxes or levies applicable to
construction materials could increase our input costs and adversely affect project profitability.
(₹ in lakhs, unless otherwise stated)
Set out below are details of expenses incurred towards construction materials, labour and direct expenses:
(₹ in lakhs, unless otherwise stated)
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complete visibility into competing supply, including projects being planned or developed by unorganized
or smaller developers, which may result in underestimation of market supply and increased pricing
pressure.
As per ICRA Report, the industry is also witnessing intensifying competition and market consolidation,
with large, well-capitalised developers expanding across geographies. Such competitive pressures may
lead to pricing pressure, higher marketing costs and margin compression, particularly for regional
developers, and may adversely affect profitability across the sector.
We also compete with other developers for acquisition of land and development rights, skilled
manpower, contractors, consultants, channel partners and customers. Certain competitors may have
greater financial resources, larger land banks, stronger brand recognition, longer operating history, or
access to capital at more favourable terms, which may enable them to price projects more competitively,
incur higher marketing expenditure or absorb short-term cost increases. Increased competition could
result in pressure on pricing, slower sales absorption, higher customer acquisition costs and reduced
margins.
Our ability to compete successfully depends on several factors, including project location, design,
pricing, execution timelines, quality, brand perception and access to funding. If we are unable to maintain
or enhance our competitive position, or if competitive pressures intensify in our operating markets, our
business prospects, results of operations, cash flows and financial condition could be adversely affected.
- 27. We are subject to extensive statutory or governmental regulations, including the Real Estate
(Regulation and Development) Act, 2016, and a change in laws, rules, regulations and legal
uncertainties, including the withdrawal of certain benefits or adverse application of tax laws or any
non-compliance of any applicable law, may adversely affect our business, results of operations and
financial condition.
Our business operations are subject to extensive regulation by central, state and local authorities in India,
including regulations applicable to the real estate sector. As of October 31, 2025, all of our Ongoing
Projects are registered under the Real Estate (Regulation and Development) Act, 2016 (“RERA”). The
real estate sector in India is heavily regulated, and compliance with applicable laws, rules and regulations
is critical to the conduct of our business.
RERA was introduced in May 2017 with the objective of regulating the real estate industry, enhancing
transparency, protecting the interests of homebuyers and imposing accountability on real estate
developers. RERA and the rules and regulations made thereunder impose several obligations on
developers, including mandatory registration of real estate projects, restrictions on advertising and
acceptance of advances prior to registration, maintenance of separate escrow accounts for project-wise
collections, limitations on withdrawal of funds from such escrow accounts, periodic disclosures to
regulatory authorities and obtaining customer consent for certain changes to RERA registrationdetails.
In addition, state governments, including the Government of Kerala where all our projects are located,
have notified rules under RERA which are applicable to our projects.
The RERA framework has been Introd”ced ’elatively recently and was amended in December 2021. As
a result, there is limited judicial precedent and interpretational clarity on certain provisions of RERA and
the rules framed thereunder. While we believe that we are in compliance with the applicable provisions
of RERA and, as of the date of this Draft Red Herring Prospectus, we have not received any notices,
penalties or adverse observations from the Kerala Real Estate Regulatory Authority (“K-RERA”), there
can be no assurance that our interpretation of the applicable provisions will not differ from future judicial
pronouncements, regulatory clarifications or enforcement actions. Any such divergence may require us
to undertake corrective or remedial measures, incur additional costs, face penalties or experience delays
in project execution.
Further, our business is also subject to other applicable laws and regulations relating to land acquisition,
development controls, environmental approvals, building permits, fire safety, labour laws, taxation and
stamp duty, among others. Changes in existing laws, the introduction of new laws, withdrawal of existing
benefits, adverse application or interpretation of tax laws, or any failure to comply with applicable legal
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Further, there can be no assurance that our KPIs will be higher than our comparable listed industry peers
in the future. An inability to improve, maintain or compete, or any reduction in such KPIs in comparison
with the listed comparable industry peers may adversely affect the market price of the Equity Shares.
Also see, “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Non-GAAP Measures” on page397.
- 47. While most of our Directors have prior experience serving in listed companies, our Company has not
previously operated as a listed entity, and ensuring compliance with applicable listing-related
regulatory requirements may require enhanced governance processes and management attention.
All of our Directors except Varriam Kandi Vijayakumar have prior experience of serving listed
companies. Such experience provides valuable familiarity with listed-company governance practices,
regulatory compliance requirements and stakeholder engagement.
However, our Company has not previously operated as a listed entity. Upon listing of our Equity Shares,
we will be subject to enhanced regulatory, disclosure and compliance requirements under the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, the Companies Act, 2013 and
other applicable laws. Ensuring compliance with such requirements will require strengthening of internal
controls, governance frameworks, reporting systems and processes across the organisation.
While our Directors and Senior management possess relevant industry and managerial experience, the
transition to operating as a listed company may require additional time, resources and management
attention to ensure full and timely compliance with applicable regulatory obligations and evolving
governance standards. Any failure to effectively implement or maintain appropriate governance
frameworks, internal controls or compliance mechanisms, or any delays in adapting to the requirements
applicable to listed entities, could result in regulatory action, penalties, reputational harm and could
adversely affect our business, results of operations, cash flows and financial condition.
- 48. Our Company cannot assure payment of dividends on Equity Shares in the future.
Our Company has not declared dividends in the six months ended September 30, 2025 and Fiscals 2025,
2024 and 2023 and from October 1, 2025 until the date of this Draft Red Herring Prospectus. Our ability
to pay dividends in the future will depend on a number of factors identified in the dividend policy of our
Company, liquidity position, profits, capital requirements, financial commitments and other relevant or
material factors considered relevant by our Board. The declaration and payment of dividends will be
recommended by the Board of Directors and approved by the shareholders, at their discretion, subject to
the provisions of our Articles of Association and applicable law, including the Companies Act 2013. We
may retain all future earnings, if any, for use in the operations and expansion of the business. We cannot
assure you that we will be able to pay dividends in the future. Additionally, our ability to pay dividends
may also be restricted by the terms of financing arrangements that we may enter into. See “Dividend
Policy” on page296.
- 49. Our Promoters, our Directors and Key Managerial Personnel have interests in our business other
than the reimbursement of expenses incurred or normal remuneration or benefits.
We have entered into related party transactions with our Promoters for, among other things purchase of
immovable property, rent, intrest expense, loan,. For details, see “Restated Financial Information —
Note 37 – Related Party Disclosures” on page 358. We enter into certain related party transactions in
the ordinary course of our business, and we cannot assure you that such transactions will not adversely
affect our financial condition and results of operations.
Further, our Promoter Director and Key Managerial Personnel have interests in our Company to the
extent of the Equity Shares held by them and any remuneration or other benefits received by our Promoter
Director and Key Managerial Personnel in their capacity as Directors or employees of our Company.
Such interests may differ from or conflict with the interests of our other shareholders. While we believe
that appropriate corporate governance practices and oversight mechanisms are in place, there can be no
assurance that these interests will not influence business decisions in a manner adverse to our Company
or our public shareholders.
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- 50. Fraud or improper conduct could harm our reputation and disrupt project completion and adversely
affect our business and results of operations.
The real estate development industry in India is susceptible to risks of fraud, corruption and other
improper or unethical practices due to the scale of operations, involvement of multiple third parties and
the complexity of project execution. Our business operations involve engagement with a wide range of
employees, contractors, subcontractors, consultants, vendors, suppliers and customers across various
stages of project development, which may expose us to risks of fraud or improper conduct.
Such conduct may include, among other things, bribery or corrupt practices in relation to procurement,
regulatory approvals or inspections, deliberate use or supply of sub-standard or non-compliant
construction materials, poor workmanship, misrepresentation, theft, embezzlement or diversion of funds,
collusion with third parties, falsification of records or unauthorised transactions by employees,
contractors or other counterparties. Although we have not faced incident in the past, we may be exposed
to risks arising from fraudulent acts or defaults by customers, including delayed payments, misuse of
funds, misrepresentation or contractual disputes.
Any such fraudulent or improper conduct, whether detected or not, could result in project delays, cost
overruns, quality defects, safety incidents or non-compliance with applicable laws, building standards or
contractual obligations. This could lead to increased remediation and rectification costs, termination or
replacement of contractors, disruption of construction schedules, delay in completion and handover of
projects.
Adverse publicity or allegations relating to fraud, corruption or unethical conduct involving our projects,
employees, contractors or other business associates could impair our ability to market and sell our
projects, attract customers, retain skilled employees, engage reputable contractors or secure financing
from lenders and investors. Although we have implemented internal controls and procedures to mitigate
such risks, there can be no assurance that these measures will be effective in preventing or detecting all
instances of fraud, corruption or improper conduct in a timely manner. Failure to adequately prevent,
detect or respond to such incidents could materially and adversely affect our business, reputation,
financial condition and results of operations.
- 51. The Government of India or state governments may exercise rights of compulsory purchase or eminent
domain over our or our land, which could adversely affect our business.
The right to own property in India is subject to restrictions that may be imposed by the GoI. In particular,
the GoI, under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013 (the “Land Acquisition Act”) has the right to compulsorily
acquire any land if such acquisition is for a “public purpose,” after providing compensation to the owner.
However, the compensation paid pursuant to such acquisition may not be adequate to compensate the
owner for the loss of such property. The likelihood of such acquisitions may increase as central and state
governments seek to acquire land for the development of infrastructure projects such as roads, railways,
airports and townships.
Additionally, we may face difficulties in interpreting and complying with the provisions of the Land
Acquisition Act due to limited jurisprudence on them or if our interpretation differs from or contradicts
any judicial pronouncements or clarifications issued by the government. In the future, we may face
regulatory actions, or we may be required to undertake remedial steps. Any such action in respect of any
of the projects in which we are investing or may invest in the future may adversely affect our business,
financial condition or results of operations.
- 52. Any future delay or non-compliance in payment of statutory dues by our Company could expose us to
penalties and adversely affect our business, financial condition and results of operations.
There have been no delays in payment of statutory dues by our Company during the six-month period
ended September 30, 2025 and the three Fiscals ended March 31, 2025, 2024 and 2023. Our Company
has been compliant with applicable statutory payment obligations, including dues under labour laws, tax
laws, during the such period.
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- • changes in our shareholder base;
- • changes in our dividend policy;
- • issuances, exchanges or sales, or expected issuances, exchanges or sales;
- • changes in accounting standards, policies, guidance, interpretations or principles;
- • changes in the regulatory and legal environment in which we operate; and
- • market conditions in the construction and development industry and the domestic and
worldwide economies as a whole.
Any of these factors may result in large and sudden changes in the volume and trading price of Equity
Shares. In the past, following periods of volatility in the market price of a company’s securities,
shareholders have often instituted securities class action litigation against that company. If we were
involved in a class action suit, it could divert the attention of management, and, if adversely determined,
have an adverse effect on our business, results of operations and financial condition.
- 70. Any future issuance of Equity Shares, or convertible securities or other equity linked securities by us
may dilute your shareholding and any sale of Equity Shares by our Promoter may adversely affect the
trading price of the Equity Shares.
Any future issuance of the Equity Shares or securities linked to the Equity Shares by our Company,
including issuance of Equity Shares to eligible employees (as defined in the ESOP Schemes), may dilute
your shareholding. Any such future issuance of the Equity Shares or future sales of the Equity Shares by
any of our significant shareholders may also adversely affect the trading price of the Equity Shares and
impact our ability to raise funds through an offering of our securities. Any perception by investors that
such issuances or sales might occur could also affect the trading price of the Equity Shares.
Additionally, the disposal, pledge or encumbrance of the Equity Shares by any of our significant
shareholders, or the perception that such transactions may occur, may affect the trading price of the
Equity Shares. There can be no assurance that we will not issue further Equity Shares or that our existing
Shareholder (i.e. our Promoter) will not dispose of further Equity Shares after the completion of the Issue
(subject to compliance with the lock-in provisions under the SEBI ICDR Regulations) or pledge or
encumber its Equity Shares. Any future issuances could also dilute the value of shareholder’s investment
in the Equity Shares and adversely affect the trading price of our Equity Shares. Such securities may also
be issued at prices below the Issue Price. We may also issue convertible debt securities to finance our
future growth or fund our business activities. In addition, any perception by investors that such issuances
or sales might occur may also affect the market price of our Equity Shares.
- 71. Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and
IFRS, which investors may be more familiar with and may consider material to their assessment of
our financial condition.
Our Restated Financial Information for the six months ended September 30, 2025 and Fiscals 2025, 2024
and 2023, have been prepared and presented in conformity with Ind AS. Ind AS differs in certain
significant respects from IFRS, U.S. GAAP and other accounting principles with which prospective
investors may be familiar in other countries. If our financial statements were to be prepared in accordance
with such other accounting principles, our results of operations, cash flows and financial position may
be substantially different. Prospective investors should review the accounting policies applied in the
preparation of our financial statements and consult their own professional advisers for an understanding
of the differences between these accounting principles and those with which they may be more familiar.
Any reliance by persons not familiar with Indian accounting practices on the financial disclosures
presented in this Draft Red Herring Prospectus should be limited accordingly.
- 72. Property litigation is common in India and may be prolonged over several years which could have an
adverse impact on our financials and operations.
Property litigation particularly litigation with respect to land ownership is common in India (including
public interest litigation) and is generally time consuming and involves considerable costs. If any
Page 93
property in which we have invested is subject to any litigation or is subjected to any litigation in future,
it could delay a development project and/or have an adverse impact, financial or otherwise, on us.
- 73. The real estate industry in India has witnessed significant downturns in the past, and any significant
downturn in the future could adversely affect our business, financial condition and results of
operations.
Economic developments within and outside India adversely affected the property market in India and
our overall business in the recent past. The global credit markets have experienced, and may continue to
experience, significant volatility and may continue to have an adverse effect on the availability of credit
and the confidence of the financial markets, globally as well as in India.
Even though the global credit and the Indian real estate markets have shown signs of recovery, market
volatility and economic turmoil may continue to exacerbate industry conditions or have other unforeseen
consequences, leading to uncertainty about future conditions in the real estate industry. These effects
include, but are not limited to, a decrease in the sale of, or pricing for, our projects, delays in the release
of certain of our projects in order to take advantage of future periods of more real estate demand and the
inability of our contractors to obtain working capital. We cannot assure you that the government’s
responses to the disruptions in the financial markets will restore consumer confidence, stabilize the real
estate market or increase liquidity and availability of credit. Any significant downturn in future would
have an adverse effect on our business, financial condition and results of operations.
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Page 150
@ For preparation of the Industry Report commissioned and paid for by our Company, exclusively for the purpose of the Issue.
$ For audit of the Restated Financial Information and issuance of certifications in connection with and for the purpose of the Issue.
To be incorporated in the Prospectus after finalization of the Issue Price. Issue expenses are estimates and are subject to change.
Issue expenses include goods and services tax, where applicable.
- (1) Selling commission payable to the SCSBs on the portion for QIBs, RIBs and Non-Institutional Bidders which are directly
procured and uploaded by the SCSBs, would be as follows:
Portion for QIBs
[●]% of the Amount Allotted* (plus applicable taxes)
Portion for RIBs
[●]% of the Amount Allotted* (plus applicable taxes)
Portion for Non-Institutional Bidders
[●]% of the Amount Allotted* (plus applicable taxes)
* Amount Allotted is the product of the number of Equity Shares Allotted and the Issue Price.
Selling Commission payable to the SCSBs will be determined on the basis of the bidding terminal id as captured in the
Bid Book of BSE or NSE.
No processing fees shall be payable by our Company to the SCSBs on the applications directly procured by them.
Processing fees payable to the SCSBs on the portion for QIBs, RIB and Non-Institutional Bidders (excluding UPI Bids)
which are procured by the members of the Syndicate/sub-Syndicate/Registered Broker/RTAs/ CDPs and submitted to
SCSB for blocking, would be as follows:
Portion for QIBs, RIB and Non-Institutional Bidders
₹ [●] per valid application (plus applicable taxes)
Uploading/Processing fees payable to the SCSBs for capturing Syndicate Member/Sub syndicate (Broker)/Sub-broker
code on the ASBA Form for Non-Institutional Bidders and Qualified Institutional Bidders with bids above ₹ [●] would
be ₹ [●] plus applicable taxes, per valid application. In case the total ASBA processing charges payable to SCSBsexceeds ₹ [●] Lakhs, the amount payable to SCSBs would be proportionately distributed based on the number of valid
applications such that the total ASBA processing charges payable does not exceed ₹ [●] Lakhs.
- (2) Selling commission on the portion for RIBs (up to ₹ [●]) using the UPI mechanism, Non-Institutional Bidders, QIBs which
are procured by members of the Syndicate (including their sub-Syndicate Members), RTAs and CDPs or for using 3-in-1
type accounts- linked online trading, demat & company account provided by some of the brokers which are members of
Syndicate (including their Sub-Syndicate Members) would be as follows:
Portion for QIBs
[●]% of the Amount Allotted* (plus applicable taxes)
Portion for RIBs
[●]% of the Amount Allotted* (plus applicable taxes)
Portion for Non-Institutional Bidders
[●]% of the Amount Allotted* (plus applicable taxes)
*Amount allotted is the product of the number of Equity Shares Allotted and the Issue Price.
The Selling Commission payable to the Syndicate / Sub-Syndicate Members will be determined:
- 1. For RIBs & NIBs (up to ₹ 5 lakhs) on the basis of the application form number / series, provided that the application
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- 1. Net Asset Value per Equity Share is calculated as Net Worth divided by number of equity shares outstanding during the
respective year/period.
- 2. Net Worth means the aggregate value of “Equity” and “Other Equity” as mentioned in the Restated Financial Information
for the Period ended September 30, 2025 & years ended March 31, 2025, 2024, 2023.
- 5. Peer Competitors - Comparison of Accounting Ratios with listed industry peers:
Following is the comparison with our peer group companies listed in India and in the similar line of
business as our Company:
Source: All the financial information for listed industry peers mentioned above is sourced from the Annual Reports of the peer
company or their financial results uploaded on the NSE website for the year ended March 31, 2025.
Notes:
- 1. P/E Ratio has been computed based on the closing market price of equity shares on the NSE on December 29, 2025, divided
by the Diluted EPS of March 31, 2025.
- 2. RoNW is computed as net profit after tax divided by the closing net worth. Net worth has been computed as sum of Equity
and Other Equity.
- 3. NAV is computed as the closing net worth divided by the weighted average number of equity shares.
Investors should read the above mentioned information along with “Risk Factors”, “Our Business”,“Management Discussion and Analysis of Financial Position and Results of Operations” and
“Financial Information” on pages40,223,375 and297 respectively, to have a more informed view.The trading price of the Equity Shares could decline due to the factors mentioned in the “Risk Factors”and you may lose all or part of your investments.
- 6. Key Operational and Financial Performance Indicators:
The KPIs disclosed below have been used historically by our Company to understand and analyse the
business performance, which in result, help us in analysing the growth of the business.
Our Company confirms that it shall continue to disclose all the KPIs included in this section on a periodic
basis, at least once in a year (or any lesser period as determined by the Board of our Company), for a
duration of one year after the date of listing of the Equity Shares on the Stock Exchange or for such other
duration as may be required under the SEBI ICDR Regulations.
The KPIs of our Company have been disclosed in the sections titled “Our Business” on page223,respectively. We have described and defined the KPIs as applicable in “Definitions and Abbreviations”on page1.
Explanation for KPI metrics
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- 19. Average sale price per square feet: Aggregate agreement value of apartments which have been sold in the respective period/years
divided by the aggregate saleable area of the said units.
See “Management Discussion and Analysis of Financial Position and Results of Operations” on page375 for the reconciliation and the manner of calculation of our key financial performance indicators.
- 7. Comparison of financial KPIs of our Company and our listed peer.
(₹ in lakhs, except otherwise stated)
INDUSTRY OVERVIEW
Unless otherwise indicated, industry and market data used in this section has been derived from the industryreport titled “Assessment of Residential Construction Sector - With focus on Kerala” dated December 26, 2025(the “ICRA Report”) prepared and issued by ICRA, appointed by us on July 16, 2025, and exclusively
commissioned and paid for by us in connection with the Issue. ICRA is an independent agency which has no
relationship with our Company, our Promoters, Promoter Group or any of our Directors or KMPs or SMPs. The
data included herein includes excerpts from the ICRA Report and may have been re-ordered by us for the purposes
of presentation. There are no parts, data or information (which may be relevant for the proposed Issue), that has
been left out or changed in any manner. Unless otherwise indicated, financial, operational, industry and other
related information derived from the ICRA Report and included herein with respect to any particular year refers
to such information for the relevant calendar year. A copy of the ICRA Report is available on the website of our
Company at[www.veegaland.com/ipo-offer-documents](http://www.veegaland.com/ipo-offer-documents) until the Bid/Issue Closing Date. For more information,see “Risk Factors – Industry information included in this Draft Red Herring Prospectus has been derived from
the ICRA Report, which was prepared by ICRA and exclusively commissioned and paid for by our Company
for the purposes of the Issue, and any reliance on information from the ICRA Report for making an investment
decision in the Issue is subject to inherent risks” on page77
- 1. Global macroeconomic overview
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According to the International Monetary Fund (IMF), the global economy is expected to reach a nominal
size of USD 117.9 trillion in CY2025 (in nominal terms) and grow further to USD 149.6 trillion in
CY2030 (in nominal terms), reflecting a compound annual growth rate (CAGR) of approximately 5%.
Despite facing multiple global challenges, economic activity has shown notable resilience. Key drivers
include rising employment, stable income levels, favourable shifts in demand and supply, and the
strategic use of savings accumulated during the pandemic. Robust household consumption has also
played a vital role in sustaining growth across major economies. Sectors such as healthcare, technology,
logistics, and services have been instrumental in supporting job creation and wage expansion. With
inflation in major advanced economies nearing targeted levels, central banks are beginning to shift
towards monetary policy easing, signalling a more accommodative stance ahead. Amid this global
momentum, India stands out with a projected nominal GDP of USD 4.6 trillion in 2025, positioning it as
the world’s fourth-largest economy. This underscores India’s growing macroeconomic significance and
its expanding role in shaping global growth dynamics.
Chart 1: Global economy growth and prediction till CY2030 (in USD trillion- nominal terms))
Source: IMF (WEO October 2025), ICRA Analytics
Note: F-Forecasted; data from CY2026-2030 are forecasted
As per the IMF, World Economic Outlook published in October 2025, the Global growth is anticipated
to decrease from an estimated 3.3% in CY2024 to 3.2% in CY2025, subsequently rebounding to 3.1% in
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annually through CY2030.
In comparison with other advanced countries, the United Kingdom grew 0.4% in CY2023, improved to
1.1% in CY2024, and is expected to maintain 1.3% growth in CY2025. Long-term growth may stay
around 1.4% by CY2030.
Growth trend in emerging market and developing economies
In CY2024, real GDP growth across emerging and developing economies stood at 4.3% but is expected
to slow to 4.2% in CY2025 and 4.0% in CY2026. This decline is largely due to the impact of recent trade
policies and tariff pressures, which have weakened export competitiveness in many Asian countries.
Although domestic demand offers some support, export-driven growth models especially in ASEAN
nations that are deeply integrated into global supply chains—are facing challenges. As a result, overall
growth in emerging and developing Asia is projected to fall from around 4.6% in CY2024 to 4.2% in
CY2025.
China’s economic growth has eased from its previous high-growth trajectory, challenged by structural
factors such as declining productivity, stress in the property sector, and demographic shifts. Although
public investment and policy support have provided some stability, the post-pandemic recovery has been
uneven. Real GDP expanded by 3.1% in 2022, picked up to 5.4% in 2023, and is expected to slow to
5.0% in 2024, driven by consumer spending but weighed down by weak property investment. Growth is
forecast at 4.8% in 2025, with a gradual deceleration to about 3.4% annually through 2030 if significant
reforms are not implemented.
Middle Eastern countries like the UAE, Saudi Arabia, and Qatar have implemented bold policy reformsthat have significantly boosted their real estate markets. The UAE’s Golden Visa, 100% foreignownership, and expanded freehold zones have attracted global investors, while Saudi Arabia’s Vision2030 and giga projects like NEOM are reshaping urban landscapes. Qatar, post-FIFA World Cup, is
leveraging global visibility to draw investment into its property sector. These reforms, backed by
transparent legal frameworks and sustainable financing models, have made the region a competitive force
for India.
In Sub-Saharan Africa, GDP grew at a solid 3.7% in CY2024 and is expected to reach 4.1% in CY2025.The region’s youthful population and rising consumer demand provide a strong base for future growth.Within the region, South Africa and Nigeria, the two largest economies, recorded growth rates of 0.5%
and 4.1% respectively in CY2024, with projections of around 1.1% and 3.9% for CY2025.
Meanwhile, emerging and developing European economies saw growth of approximately 3.5% in
CY2024, which is expected to decline to 1.8% in CY2025. In Latin America and the Caribbean, GDP
growth is forecasted to drop from about 2.4% in CY2024 to remain flat at 2.4% in CY2025.
Growth trend in India
India remains the fastest-growing major economy globally, with real GDP growth rising from
approximately 7.6% in CY2022 to 9.2% in CY2023. In CY2024, growth moderated to 6.5% as the surge
in demand following the pandemic began to normalize, allowing the economy to align more closely with
its long-term potential. According to the IMF, India is projected to grow by 6.6% in CY2025 and 6.2%
in CY2026, driven by strong private consumption—particularly in rural areas—and sustained investment
activity. However, these projections are slightly lower (by 0.3%) due to rising global trade tensions and
economic uncertainty. Looking ahead to CY2030, India’s growth is expected to remain steady at around6.5%, supported by ongoing structural reforms, infrastructure development, and favourable
demographics.
The Trump-era tariffs on global commodities like steel, aluminium and lumber raised U.S. construction
costs by 5%, triggering inflation and disrupting real estate markets worldwide. Emerging markets faced
delays and budget overruns, while inflation led to cautious expansion and reduced leasing activity.
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- 5. Root Map for the Next 5 Years of Real Estate Industry
- - 5.1. India Real Estate Market
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- 7. SWOT Analysis
Overview: India: Residential Real-Estate Industry: SWOT Analysis
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Strengths
Weaknesses
Threats
Opportunities
- 7.1. Strength
- -
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Strong and Sustained Housing Demand Driven by Urbanization: India’s rapidly urbanizingpopulation remains the foundation of residential real estate demand. Every year, millions migrate to Tier
I and Tier II cities for employment and education, creating a structural requirement for new housing
units. This demographic trend ensures a long-term, stable demand cycle, particularly in the mid-income
and affordable housing segments. The scale of urban growth also fuels cumulative demand for supporting
infrastructure transport, utilities and civic amenities further reinforcing residential real estate expansion.
Government Policy Support and Incentives: The residential sector has gained significantly from
initiatives such as PMAY-Urban, Credit-Linked Subsidy Scheme (CLSS), Affordable Rental Housing
Complexes (ARHCs), and reduced GST rates for affordable housing. Additionally, RERA has
strengthened buyer confidence by enforcing accountability, standardizing sales practices and enhancing
transparency. Collectively, these measures mitigate risks for buyers and developers, attract new
investments and make home ownership more financially accessible to a broad segment of the population.
Rising Middle-Class Income and Aspirational Home Ownership: India’s growing middle class,increasing disposable incomes and aspirational lifestyle upgrades have amplified demand for higher-
quality housing. Home ownership is culturally regarded as both essential and a long-term wealth-building
asset, making it a priority purchase. This trend has driven uptake not only in affordable housing but also
in premium and luxury segments across fast-growing cities such as Bengaluru, Hyderabad, Pune,
Mumbai and Gurgaon. Developers are increasingly incorporating lifestyle-oriented features into projects,
further stimulating demand.
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- - 7.2. Weaknesses
- - 7.3. Opportunities
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Increasing Formalization and Institutional Participation: The entry of institutional investors, global
private equity funds and large corporate developers has introduced scale, professionalism and organized
practices into the sector. Improved corporate governance, digital sales platforms and structured financing
have enhanced industry credibility. This transformation is eliminating smaller non-compliant players,
improving construction quality and accelerating the adoption of advanced technologies like precast,
MIVAN and green building solutions.
Volatility in Raw Material Prices and Resulting Margin Pressure: While cement and steel prices
have recently remained relatively stable or even softened, the core challenge for the residential real estate
sector is not just high prices, but the volatility and unpredictability of these input costs. The sector is
highly sensitive to fluctuations in raw material prices because construction timelines stretch over multiple
years, making developers vulnerable to price swings within the project cycle. Sudden spikes – even if
temporary – in cement, steel, sand, bricks, or labor costs can significantly affect project profitability,
especially for developers operating on thin margins or in the affordable housing segment where pricing
flexibility is limited. This volatility increases the financial risk for developers, disrupts budgeting, and
may lead to cash flow mismatches or construction delays. Therefore, the key weakness is the uncertainty
and volatility in key construction inputs rather than consistently high prices, which continues to exert
margin pressure on the industry.
Complex Regulatory Approvals and Lengthy Timelines: The sector remains burdened by intricate,
multi-agency approval processes involving land-use permissions, environmental clearances, fire NOCs,
utility provisioning and municipal sanctions. Prolonged timelines inflate capital costs, delay project
launches and introduce uncertainty into construction planning. The absence of uniform regulatory
frameworks across states further creates inconsistent execution schedules, disproportionately impacting
smaller developers with limited administrative capacity.
Dependence on Debt Financing and High Leverage: Indian developers have traditionally relied on
high-cost debt, exposing them to liquidity stress during market downturns. Many face mismatches
between cash inflows from sales and outflows for construction, resulting in stalled or delayed projects.
The NBFC crisis and stricter bank lending norms have compounded liquidity challenges, making
financing a persistent vulnerability for the sector.
Demand-Supply Imbalance and Elevated Inventory in Select Markets: Despite overall market
growth, certain micro-markets particularly in NCR and the Mumbai Metropolitan Region continue to
grapple with oversupply in specific price segments. Large volumes of unsold inventory lock up capital,
suppress price appreciation and weaken developer’s financial health. This imbalance often stems fromearlier prioritization of luxury or high-margin projects that failed to align with prevailing affordability
trends.
Rapid Growth in Affordable and Mid-Income Housing: Affordable and mid-income segments
supported by government incentives and strong first-time homebuyer demand represent the mostsignificant growth opportunity in India’s residential market. Rising nuclear families and increasing urbanworkforce mobility are expected to sustain structural demand in this category. Developers offering
compact, efficiently designed units with appealing amenities stand to gain the most.
Technology Adoption and Digital Transformation: There is considerable scope for integrating
PropTech solutions across sales, construction, and post-sales services. Tools such as BIM, AI-driven
project management, online sales platforms, VR-enabled site visits, and IoT-powered smart homes can
enhance efficiency, shorten construction timelines and improve customer experience. Digital
transformation also expands market reach, lowers marketing costs and promotes transparency attributes
increasingly valued by modern homebuyers.
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- - 8.2. Financial benchmarking of key peers in the sector
Table 13: Financial benchmarking of key peer companies for the Half Year 2026
Comparison with industry peers
Source: Company Financial Statements, ICRA Analytics
NA: Not Available
*Company does not make consolidated financial statements separately
Table 14: Financial benchmarking of key peer companies for the Financial Year 2025
Comparison with industry peers
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Table 16: Financial benchmarking of key peer companies for the Financial Year 2023
Comparison with industry peers
Source: Company Financial Statements, ICRA Analytics
NA: Not Available
*Company does not make consolidated financial statements separately
#Considered standalone financial statements since the consolidated financial statements couldn’t be found.
Table 17: List of Formulas used for the key peer comparison
KEY REGULATIONS AND POLICIES IN INDIA
The following is an indicative summary of certain relevant industry specific laws, regulations and policies in India
which are applicable to our business and operations. The information available in this section has been obtained
from publications available in public domain. The description of laws and regulations set out below may not be
exhaustive and is only intended to provide general information to the investors and are neither designed nor
intended to substitute for professional legal advice. The statements below are based on the current provisions of
the Indian law, which are subject to amendments or modification by subsequent legislative actions, regulatory,
administrative, quasi-judicial, or judicial decisions. Also see “Risk Factors – Changing laws, rules and
regulations and legal uncertainties, adverse application or interpretation of corporate and tax laws, may
adversely affect our business, prospects and results of operations” on page81.
Under the provisions of various Central Government and State Government statutes and legislations, we are
required to obtain and regularly renew certain licenses or registrations and to seek statutory permissions to
conduct our business and operations. For details of such licenses and registration required to be obtained by our
Company, see “Government and Other Approvals” page429.
- A. Industry Related Laws
CENTRAL LEGISLATIONS
Real Estate (Regulation and Development) Act, 2016 (“RERA”) and the rules thereunder
RERA mandates that promoter of any real estate project and for which completion certificate has not
been issued can only market and sell the project if it is registered with the Real Estate RegulatoryAuthority (“Authority”) established under RERA. It also mandates the functions and duties of thepromoter, including that the promoter must park 70% of all project receivables into a separate account.
Drawdown from such account is permitted for land and construction costs only, in proportion to the
percentage of project completion (as certified by an architect, an engineer and a chartered accountant).
Further, a promoter can accept only up to 10% of the apartment cost prior to entering into a written
agreement for sale with any allottee. Further, the promoter is prohibited from creating any charge or
encumbrance on any apartment after executing an agreement for the same. Further, the promoter shall
not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party
without obtaining permission for two-third of the allottees and prior written approval of the Authority.
RERA also ensures that the project shall be developed and completed by the promoter in accordance
with the sanctioned plans, layout plans and specifications as approved by the competent authorities and
subsequent to the disclosure of the plan to the allottee who agree to take one or more of the said
apartment, plot or building, the promoter shall not make any addition or alteration in the sanctioned plans,
layout plans and specifications and the nature of fixtures, fittings, amenities or common areas of the
apartment, plot or building without previous consent of that allottee. Further, the promoter may make
minor changes or alterations as may be necessary due to architectural and structural reasons duly
recommended and verified by an authorised architect or engineer after proper declaration and intimation
to the allottee.
Non-registration of a real estate project as per RERA would result in penalties up to 10% of the estimated
cost of the project as determined by the Authority. Contravention of any other provision of RERA or
order issued by the Authority may result in penalties up to 5% of estimated cost of the project orimprisonment up to three years or both. Further, the promoter’s contravention or failure to comply withany order of the Appellate Tribunal formed under the RERA will result in imprisonment for a term
extending to three years or with a fine further up to 10% of the estimated cost of the real estate project,
or both.
Additionally, if the promoter fails to give possession of the apartment, plot or building in accordance
with the terms of agreement for sale, or due to discontinuance of business or suspension or revocation of
registration under RERA, promoter must return the amount received from the allottee, along with interest
as provided under the RERA. Any delay in handing over possession would also require the promoter to
pay interest for every month of delay. Further, we as promoter are required to comply with the rules and
regulations issued under RERA by the respective state governments as per the location of the real estate
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experience, including more than14 years of experience in the real estate industry. He has also served on the Board
of Directors of V-Guard Industries Limited and Wonderla Holidays Limited. Currently, he is also serving as the
director of K Chittilappilly Foundation.
Saraladevi Mecheriparambil is the Independent Director of our Company. She has been associated with the
Company since October 1, 2025. She has completed her degree in Bachelor of Arts in Economics from University
of Calicut. She is also a Certified Associate of Indian Institute of Bankers. She has over 37 years of experience in
the banking industry. Previously she was associated with Canara Bank. Currently she is also serving as the
Independent Director of Maxvalue Credits and Investments Limited.
Varriam Kandi Vijayakumar is the Independent Director of our Company. He has been associated with the
Company since October 1, 2025. He has completed his degree in Master of Arts from University of Calicut. He
has also completed his degree in Doctor of Philosophy in Economics from University of Calicut. He has over 15
years of experience in the field of financial services. Currently he is also serving as Chief Investment Strategist in
Geojit Investment Limited.
Relationship between Directors and Key Managerial Personnel or Senior Management
None of our Directors, Key Managerial Personnel and Senior Management are related to each other.
Confirmation
None of our Directors is or was a director of any listed company whose shares have been or were suspended from
being traded on any stock exchanges in India during the term of their directorship in such companies, in the last
five years preceding the date of this Draft Red Herring Prospectus.
None of our Directors is or was a director of any listed company which has been or was delisted from any stock
exchanges, during the term of their directorship in such Companies.
None of our Directors are prohibited from accessing the capital market or debarred from buying, selling or dealing
in securities under any order or direction passed by SEBI or any securities market regulator in any other
jurisdiction or any other authority/court. Additionally, none of our Directors are or were, associated with any other
company which is debarred from accessing the capital market by the Securities and Exchange Board of India.
Terms of appointment of our Executive Directors
Kochouseph Thomas Chittilappilly, Whole-time Director
The following table sets forth the terms of appointment of Kochouseph Thomas Chittilappilly with effect fromOctober 1, 2025 for period of 3 years upto September 30, 2028.
