Roopshri Resorts IPO Review (Date, Price, DRHP)

Roopshri Resorts IPO Review

Roopshri Resorts Limited is engaged in hospitality services. This is a Mumbai based company. Here, Roopshri Resorts IPO Review is going to be the main discussion topic.

Roopshri Resorts IPO Review Issue Details :

  • IPO Opens on – March 19, 2019.
  • IPO Closes on – March 22, 2019.
  • Face Value – Rs.10 Per Equity Share.
  • Issue Price – Rs.20 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 6000 Shares.
  • Minimum Order Quantity – 6000 Shares.
  • Issue Size – 1,800,000 Equity Shares of Rs. 10 aggregating up to Rs.3.60 Cr.
  • Listing Exchange – BSE SME Exchange.
  • Draft Prospectus – Download

Objectives of the issue of the Company :

  • Repayment of Loans
  • Repairs and Restoration of Hotel Alexander at Matheran
  • General Corporate Purposes
  • Issue Expenses.

About The Company –

  • Roopshri Resorts Limited was incorporated in 1990.
  • This company is operating “Hotel Alexander” at Matheran, a hill station in Maharashtra.
  • Roopshri Resorts Limited is one of the oldest hotel properties in Matheran.
  • This company comprises of 13 private cottage rooms and 12 executive rooms. Currently, Hotel Alexander is only offering small scale services of the lodging facility.
  • Roopshri Resorts Limited is planning to renovate this property and increase its operational capacity and also rebuild its boarding facilities to be able to offer full lodging and boarding facilities to their customers.
  • This company is also planning to segregate the operations into various departments likes housekeeping, sales and marketing, human resource, and accounts for better operability.
  • Roopshri Resorts Limited is focusing primarily on three strategies for future growth which are:
  1. Repay the loan from the proceeds of IPO to make balance sheet stable and clean.
  2. Ensure Asset-Light Model to remain liquid by not owning any real estate property and maintaining
    stress-free cash flow.
  3. Renovate the hotel property and reach profitability by next financial year.
  • This company believes that by not owning assets we will continue to remain liquid and would be able to move away from non-performing assets and move into performing assets in an easier and much smoother way.
  • The Hotel had not been operating to full capacity due to the poor condition of the hotel facilities and hence Roopshri Resorts Limited shall be conducting restoration and repairs work and shall be making the Hotel fully operational and increase its scale of operations.

Roopshri Resorts Limited

LOCATION :

Registered office :
Alexander, S. No. 246,
Plot No. 99, Matheran,
Tal: Karjat, Raigad – 410 102
Mumbai Office :
Unit No. 1, Ground Floor,
Reva Apartment, Bhulabhai Desai Road,
Haji Ali, Cumbala Hill,
Mumbai – 400 018.
Telephone : 02148 – 230 069

The promoter of Roopshri Resorts Limited :

  • The Promoters of the Company are Mrs. Roopa Shah and Mr. Shreyas Shah.

The Board of Directors of this company :

  • Mrs. Roopa Shah, aged 57 years, is the Promoter and Executive Director of this Company.
  • Mr. Shreyas Shah, aged 30 years, is the Executive Director of the Company.
  • Ms. Pushpaben Kothari, aged 72 years, is a Non-Executive Non-Independent Director of this company.
  • Mr. Niken Shah, aged 28 years is a Non-Executive Independent Director of the Company.
  • Mrs. Tejal Vala, aged 35 years, is the Non-Executive Independent Director of this Company.

Competitive Strengths of Roopshri Resorts Limited :

  • Locational Benefits are the main competitive strength of Roopshri Resorts Limited –

Roopshri Resorts Limited believe that one of the biggest selling points of our hotel is its location. Firstly this company is located at Matheran which is a very popular hill station near Mumbai and Pune. Matheran has the distinction of being the only popular tourist spot which does not have any motorways or industrial activities.

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  • Well, Educated and Experienced Promoter Group are another strength of this company –

Mrs. Roopa Shah and Mr. Shreyas Shah are this company’s promoter group directors. Mrs. Roopa Shah has over 2 decades experience in the hospitality industry and Mr. Shreyas Shah has strong financial markets experience. Roopshri Resorts Limited believe that due to the strong background of this company’s promoter group family they would be able to ensure sustained growth of the company.

  • Large Property Size is the strength of Roopshri Resorts Limited –

Roopshri Resorts Limited have recently taken “Hotel Alexander” on a leave and license basis wherein their plan to renovate and re-organize the hotel facilities and make it fully operational. This property of this company is almost 3.75 acres in size but only less than half acres are currently being used for the hotel facilities. This large property size is a big benefit for us as Roopshri Resorts Limited believe that once we create strong branding and customer demand for this company’s hotel there would have readily available land space for further expansion and hence take further operating margin improvements.

Business strategies of Roopshri Resorts Limited :

  • Ensure Strong Equity Position and Low Leverage are the main business strategy of Roopshri Resorts Limited.
  • Asset-Light Model is one of the best strategies of this company.
  • Another business strategies are explored value opportunities in the hospitality and tourism sector of Roopshri Resorts Limited.

Company Financials :

Roopshri Resorts IPO

Roopshri Resorts IPO Review :

The above statement is derived from the company prospectus (draft red herring prospectus). It reflects the company’s profit amount is too low, in the FY18, it has gained maximum profit among the past years. Among the other fundamental details EPS (earnings per share) stands at 1.04 as per FY18. P/E (price to earnings ratio) was 19.23 (based on basic and diluted EPS). As per the latest FY data, its RoNW (return on net worth) was 9.33% and NAV/Share was 11.14. Based on the available data, Roopshri Resorts IPO Review carries a NEGATIVE view, Invest in this IPO is not a safe option right now. Investors may apply for it but completely at their own risk.

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