Veegaland Developers, promoted by Kochouseph Thomas Chittilappilly and part of broader V-Guard Group, a real estate development Company engaged in the planning, development and sale of multi-storied residential apartment projects in the state of Kerala, India. The company offers mid-premium, premium, ultra-premium, luxe-series and ultra-luxury residential units under the brand name ‘Veegaland Homes’. Currently it has undertaken projects in Kochi, Thiruvananthapuram, Kozhikode and Thrissur in the state of Kerala, India.

The company as of June 30, 2026, has completed 10 residential projects aggregating to 1.105 million square feet (msft) of saleable area. These comprised of 692 units (including 43 units allocated to landowners under JDAs). All units across these completed projects have been fully sold, demonstrating complete absorption of delivered inventory. This also demonstrates the credibility of its execution track record across area of its operation in the state of Kerala.

The company has undertaken/s projects both on freehold land acquired through outright purchase and projects executed under asset-light development model implemented through joint development arrangements (“JDAs”) with landowners. While the in-house team of engineers undertakes project monitoring activity including planning, supervision, quality control and regulatory compliance, the construction activities are carried out through independent third-party civil contractors. Similarly the architectural design, structural engineering, MEP (Mechanical, Electrical and Plumbing) design and related consultancy services are undertaken by external consultants.

As of June 30, 2026, it have a portfolio of 12 Ongoing Projects (994 units with saleable area of 1.86 msft), and 3 Upcoming Projects (212 units with saleable area of 0.46 msft) all in the state of Kerala. The 994 units in ongoing projects include 7 units comprising 14907 square feet of saleable area allocated to landowners under JDA. Moreover of the total units for sales in the ongoing projects, the company has already sold 637 units aggregating to 1.17 msft of saleable area representing 63.62% of the total saleable area excluding JDA share as end of Jun 30, 2026. The aggregate value of its contracted order book was Rs 909.4207 crore, representing the aggregate value of sale agreements executed in our ongoing projects as end of Jun 30, 2026.

Parallel to the same, as on Aug 31, 2026, it maintain land reserves aggregating 6.51 acres across in Kochi and Kozhikode, which are intended to support future residential development, subject to receipt of applicable statutory approvals, feasibility assessments and market conditions.

The issue, Objects of the issue

The offer comprises only fresh issue of equity shares of Rs 10 each aggregating to Rs 210 crore.

Of the net proceeds from fresh issue, the company intends to use Rs 119.8254 crore to fund a part of the expense to be incurred in the development of its ongoing projects and balance towards funding unidentified acquisition of land as well as general corporate purposes.

Strengths

Established track record of timely completion and sales absorption across completed and ongoing projects

Strong pipeline of ongoing and upcoming projects

Integrated land source approach and balanced multi-stage development portfolio

Integrated and process-driven development model covering the entire project lifecycle

Weaknesses

Business of the company is entirely concentrated in the state of Kerala, and thus the performance of it is highly dependent on residential real estate market conditions, regulatory developments, economic factors and climatic events in Kerala.

Do not undertake construction activities in-house and relies on third-party contractors and specialist agencies, including architects and other consultants, for the construction, development, design and execution of its projects.

Have incurred negative cash flows from operating activities in FY26 and FY25.

Real estate industry is competitive and fragmented as well as cyclical.

Operates in a capital intensive business that requires incurring upfront investment for land acquisition construction, regulatory approvals, and project management.

Joint development arrangements may subject it to title, execution and counterparty risks.

Valuation

Consolidated re-stated revenue for the fiscal ending March 2026 stood higher by 30% to Rs 250.98 crore. With OPM expand by 10 bps to 15.7%, the growth of OP was 32% to Rs 39.46 crore. Finally, net profit was higher by 30% to Rs 26.61 crore.

On expanded equity, the EPS for FY2026 was Rs 5.5. On the upper price band, the PE works out to 25.5 times of its FY26 EPS. P/BV stood at 1.4 times and EV/Sales stood 2.9 times. ROE stands at 4%.

In comparison, predominantly south India focused realty players such as Puravankara quotes at a PE of 80.6 times, price/BV of 2.9 times, EV/sales of 2.9 times, ROE of 3.6% and FY26 OPM stood at 18.5%. Shriram Properties quotes at a PE of 12.6 times, price/BV of 0.9 times, EV/sales of 1.5 times, ROE of 6.9% and OPM of 6.7%.