The ₹210 crore IPO of Veegaland Developers Ltd has entered its second day of bidding with exceptional investor interest. The issue received 96% subscription as of 12:30 AM on September 11, with investors bidding for 1,08,13,420 shares against 1,13,07,692 shares on offer. The subscription breakdown shows retail investors at 1.31 times of their reserved portion, non-institutional investors at 80%, and strong overall demand across all categories. The price band has been fixed at ₹130-140 per share, valuing the company at ₹682.5 crore. The IPO is entirely a fresh issue of 1.50 crore shares with a lot size of 107 shares, requiring a minimum investment of ₹14,980 for retail investors. The issue closes on September 15, 2026, with allotment expected on September 16 and listing scheduled for September 18 on NSE and BSE.
The latest grey market premium (GMP) for Veegaland Developers IPO stands at ₹7.14% as of September 11, indicating strong investor confidence despite the recent surge in subscription levels. With the IPO's upper price band fixed at ₹140 per share, the implied listing price based on the current GMP is ₹149.14, representing a potential 7.14% listing gain over the upper issue price. This grey market premium suggests positive sentiment among investors, though it's important to note that grey market premiums are unofficial and may not accurately reflect the stock's actual listing performance. The GMP has shown volatility throughout the bidding process, reflecting changing market sentiment and investor appetite for the real estate developer.
The IPO received a significant boost ahead of its public launch after Veegaland Developers raised ₹63 crore from anchor investors on September 9, 2026. Nine institutional investors participated in the anchor book, with EQ India Fund emerging as the largest participant after purchasing 10.71 lakh shares for ₹15 crore at the upper end of the price band. Swyom India Alpha Fund and Tiger Strategies Fund acquired 7.14 lakh shares and 5.71 lakh shares for ₹10 crore and ₹8 crore respectively. Taurus Mutual Fund, Innovative Value Fund, Visionary Value Fund, VBCUBE Ventures Trust and CP Capital each picked up 3.57 lakh shares for ₹5 crore. This strong anchor investor interest demonstrates institutional confidence in the company's growth prospects and execution capabilities.
At the upper price band of ₹140, Veegaland Developers is valued at 1.4x FY26 P/BV on a post-issue basis, which is considered attractive compared to industry peers. The company has reported healthy financial growth with consolidated restated revenue of ₹250.98 crore in FY26, up 30% from ₹192.38 crore in FY25. Operating profit increased 32% to ₹39.46 crore from ₹29.93 crore, while net profit rose 30% to ₹26.61 crore from ₹20.43 crore. The operating profit margin increased to 15.7% in FY26 from 15.6% in FY25. The company's revenue from operations demonstrated exceptional growth, with topline expanding at a CAGR of ~51% to ₹251 crore in FY26 from FY24, aided by strong project execution, robust sales momentum, and favorable demand in Kerala's residential real estate market. EBITDA and adjusted PAT grew at robust CAGRs of ~75% and ~84% over FY24-FY26 to ₹40 crore and ₹27 crore respectively, with EBITDA margins expanding ~410 basis points to ~16%. The company's sales performance indicates sustained improvement, with sales value increasing from ₹18,696.01 lakh in FY24 to ₹39,361.92 lakh in FY26.
The company plans to deploy ₹119.82 crore from the net IPO proceeds towards expenses related to the development of its ongoing projects. The remaining funds will be utilised for unidentified land acquisitions and general corporate purposes. According to Geojit Financial Services, India's residential real estate market, valued at ~₹20.4 trillion in FY25, is projected to grow at a robust ~16% CAGR through FY32, driven by urbanisation, corporate sector expansion, and rising housing demand. Veegaland Developers operates under the Veegaland Homes brand in Kerala and is part of the V-Guard Group. Its portfolio comprises 12 ongoing projects and three upcoming projects, spanning residential and other real estate developments. As of June 2026, Veegaland Developers had completed 10 projects with a total saleable area of 11.05 lakh square feet. The IPO is being managed by Cumulative Capital as the merchant banker, with MUFG Intime India Pvt Ltd serving as the registrar.
