Veegaland Developers IPO subscribed 62% on day 1

The offer received bids for 70.26 lakh shares as against 1.13 crore shares on offer.

The initial public offer (IPO) of Veegaland Developers was subscribed 0.62 times on the first day of bidding on Thursday, 10 September 2026, according to stock exchange data at 17:00 IST. The issue received bids for 70,26,583 shares against 1,13,07,692 shares on offer.

The issue opened for subscription on 10 September 2026 and will close on 15 September 2026. The company has fixed the price band at Rs 130 to Rs 140 per equity share. The IPO comprises a fresh issue of equity shares aggregating to Rs 210 crore.

Investors can bid for a minimum of 107 equity shares and in multiples thereof. The maximum subscription amount for retail investors is Rs 2 lakh. The issue is being made through the book-building route, with the shares proposed to be listed on BSE and NSE.

On 9 September 2026, the company allocated 45 lakh equity shares to anchor investors at Rs 140 per share, aggregating to Rs 63 crore. Of the total anchor allocation, 3.57 lakh shares, or 7.94%, were allocated to one domestic mutual fund through two schemes, Taurus Mid Cap Fund and Taurus Flexi Cap Fund.

Veegaland Developers, promoted by Kochouseph Thomas Chittilappilly, is engaged in the planning, development and sale of multi-storied residential apartment projects in Kerala. It markets residential projects across mid-premium, premium, ultra-premium, luxe-series and ultra-luxury segments under the ?Veegaland Homes? brand. Its projects are located in Kochi, Thiruvananthapuram, Kozhikode and Thrissur.

As of 30 June 2026, the company had completed 10 residential projects with an aggregate saleable area of 1.105 million square feet, comprising 692 units. All units in these completed projects had been sold.

The company had 12 ongoing projects comprising 994 units with a saleable area of 1.86 million square feet and three upcoming projects comprising 212 units with a saleable area of 0.46 million square feet as of 30 June 2026. Of the units available for sale in its ongoing projects, 637 units, representing 1.17 million square feet, had been sold as of 30 June 2026. The contracted order book stood at Rs 909.42 crore, representing the aggregate value of sale agreements executed in its ongoing projects.

Veegaland Developers follows a combination of outright land purchases and an asset-light development model through joint development arrangements with landowners. Its in-house team handles project monitoring, planning, supervision, quality control and regulatory compliance, while construction, architectural design, structural engineering and MEP services are undertaken through third-party contractors and consultants.

As of 31 August 2026, the company had land reserves of 6.51 acres across Kochi and Kozhikode for potential future residential development, subject to statutory approvals, feasibility assessments and market conditions.

The company plans to use Rs 119.83 crore of the net IPO proceeds to fund part of the expenditure for development of its ongoing projects. The remaining proceeds will be used for unidentified land acquisitions and general corporate purposes.

Veegaland Developers reported consolidated restated revenue of Rs 250.98 crore in FY26, up 30% from Rs 192.38 crore in FY25. Operating profit increased 32% to Rs 39.46 crore from Rs 29.93 crore, while net profit rose 30% to Rs 26.61 crore from Rs 20.43 crore. The operating profit margin increased to 15.7% in FY26 from 15.6% in FY25.

The company identifies its project execution and sales track record, pipeline of ongoing and upcoming projects, land-sourcing approach and integrated development model among its strengths. Its operations are entirely concentrated in Kerala, while construction activities are dependent on third-party contractors and specialist agencies. The company also reported negative cash flows from operating activities in FY26 and FY25.

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