Eldeco Infrastructure And Properties Limited IPO

01At a glance

What the company does: develops residential townships, low-rise apartments and group housing, and some commercial projects such as Eldeco Centre in Delhi; by March 2025 it had delivered 86 projects of more than 50 million sq ft and had 19 ongoing projects of 7.24 million sq ft and 18 forthcoming projects of 7.37 million sq ft in 14 cities (DRHP p.23).

Who pays it: home buyers; it sold 1,273 units worth ₹21,022.67 million in FY25 (DRHP p.129).

Why it is raising money: ₹6,000.00 million to repay borrowings, including secured debentures, of its material subsidiary Eldeco Infracon Realtors, and the rest for general purposes (DRHP p.24).

How fast it has grown: revenue of ₹2,878 million in FY23, ₹2,407 million in FY24 and ₹6,950 million in FY25 (DRHP p.26).

The one thing to understand: a developer expanding on borrowed money. Borrowings rose from ₹9,919 million to ₹17,852 million in FY25, operating cash flow was negative ₹3,907.50 million, and FY25 ended in a loss after ₹461.12 million of current tax on a pre-tax loss (DRHP p.26, DRHP p.129, DRHP p.499).

02The business, in plain words

A residential developer buys land, gets approvals, launches projects, takes bookings and instalments from buyers during construction, and borrows to fund land and construction.

A family in a tier-II city books a flat in an Eldeco group-housing project → the family pays instalments as construction proceeds → Eldeco builds with those payments and project loans → the flat is handed over when complete.

Average sale price rose from ₹5,253.50 per sq ft in FY23 to ₹10,973.41 in FY25 (DRHP p.129).

Earnings equation: Profit ≈ area delivered × (sale price − land and construction cost) − interest. Finance costs were ₹1,012.32 million in FY25 (DRHP p.499).

03Where the money comes from

Source: DRHP p.129.

04The growth record

Source: DRHP p.26, DRHP p.129, DRHP p.499.

Our arithmetic: revenue grew about 55.4% a year from FY23 to FY25 (our arithmetic, DRHP p.129). Net debt of ₹17,279.94 million at March 2025 was 15.1 times FY25 EBITDA of ₹1,142.29 million (our arithmetic, DRHP p.129).

05What the growth is made of

Higher prices and more launches. Sales value nearly tripled in FY25 on roughly the same area sold, as the average price per sq ft rose 68%, and launches rose from 0.65 to 3.14 million sq ft (our arithmetic, DRHP p.129). Revenue rose 189% in FY25 as more projects reached recognition (DRHP p.499).

06Earnings quality

Weak. The company made a loss before tax in FY23 and FY25 and still recorded a current tax charge in both years, ₹461.12 million in FY25 (DRHP p.499). Operating cash outflow over the three years was ₹5,803.53 million (our arithmetic, DRHP p.129). Auditors of the subsidiary Eldeco Sidcul Industrial Park noted that ₹35.10 million recovered from employees after an embezzlement by an employee of the holding company during the COVID period is held as a liability that they consider a deemed public deposit; the embezzlement was charged as an exceptional item in FY23 (DRHP p.505). EBITDA margin was 66.73% in FY24 and 16.44% in FY25 (DRHP p.129).

07The balance sheet

Source: DRHP p.26, DRHP p.129.

Cash and cash equivalents were ₹584.36 million at March 2025 (DRHP p.502).

08What the money is for

Source: DRHP p.24.

09Who is selling

Source: DRHP p.25. Together they offer shares worth up to ₹2,000 million; the split was not read for this study (DRHP p.23).

10Promoters

The promoters are Pankaj Bajaj and Bandana Kohli, who hold 99.99% between them (DRHP p.25). One criminal and one other proceeding involving ₹8.37 million are pending against the promoters (DRHP p.27).

11Who already owns it

Source: DRHP p.25.

12What changed just before the IPO

• Share structure: a split into ₹5 shares and a two-for-one bonus issue in August 2025 (DRHP p.26).
• Launches: 3.14 million sq ft in FY25, against 0.65 million in FY24 (DRHP p.129).
• Borrowings: up ₹7,934 million in FY25 (our arithmetic, DRHP p.26).
• Loss: ₹637.63 million in FY25 (DRHP p.26).
• Allotment: the bonus shares of 30 August 2025 were the last allotment before the offer, at nil consideration, following the sub-division of the ₹10 share into two ₹5 shares on 11 August 2025 (DRHP p.103).
• Auditor: no change in the statutory auditor in the three years before the filing (DRHP p.94).
• Public company: the company was incorporated as a public limited company in March 2000 (DRHP p.3).

13Capacity and expansion

Capacity is land and funding: 7.24 million sq ft under construction and 7.37 million sq ft forthcoming at March 2025 (DRHP p.23). The proceeds reduce a subsidiary's debt (DRHP p.24).

14Market size and industry structure

The C&W report cited in the offer document describes the Indian real-estate sector and says it is expected to reach US$650 billion by 2025 (DRHP p.23). newboard has not tested the report's statements.

15Competitive position

What the document claims, and what it rests on:

• A 25-year record in north India, with 86 projects delivered (DRHP p.23).
• Presence beyond Delhi-NCR in tier-II and tier-III cities, citing C&W (DRHP p.23).

Against that: heavy borrowing, negative operating cash flow, and many buyer complaints before real-estate authorities and consumer forums (DRHP p.27, DRHP p.129).

16Peers the company named

The document gives the listed peers' P/E range as 39.93 to 270.41, average 110.46 (DRHP p.127). The peer names were not read for this study.

No P/E is possible for the company until a price band is set, and it made a loss in FY25.

17Risks, in plain words

• Debt. Net debt four times equity (DRHP p.129).
• Cash flow. Negative in each of the last three years (DRHP p.129).
• Losses. Losses in FY23 and FY25 (DRHP p.26).
• Audit observations. Qualifications and emphasis of matter in FY23 and FY24 (DRHP p.75).
• Buyer disputes. 49 complaints and other matters against the company (DRHP p.27).

18Litigation and regulatory matters

Source: DRHP p.27. "Other" matters include complaints before real-estate authorities and consumer forums (DRHP p.27).

19Related-party transactions

Not read in detail for this study. The company borrows from related parties, body corporates and directors among other sources (DRHP p.502).

20What the offer document does not say

In the sections read for this study, the document does not give:

• Why current tax of ₹461 million was charged in a loss-making year, in the pages read.
• What the FY25 exceptional item of ₹184.57 million was, in the pages read.
• What the subsidiaries' ₹1,959 million of claims concern, in the pages read.
• How EBITDA reached 66.73% of revenue in FY24, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. Why did the company record ₹461 million of current tax while reporting a pre-tax loss?
2. What was the FY25 exceptional charge?
3. How was the embezzlement at Eldeco Sidcul discovered, and what controls changed?
4. How much of the ₹17,852 million of borrowings is from related parties or directors?
5. When will operating cash flow turn positive?

1Sources and cited facts

This study was read from 1 document the company filed. The 50 figures it cites are listed under the document each came from, with the page and the sentence as printed.