Aurum PropTech Limited has officially disclosed its preferential issue of 42,42,537 equity shares to REA India Pte Limited, Singapore. This move is part of a strategic equity swap for acquiring 100% of PropTiger Marketing Services Private Limited from REA. The Board of Directors approved this preferential issue on July 23, 2025, followed by shareholder approval at an Extraordinary General Meeting (EGM) on August 21, 2025.

The preferential issue, which involves shares of face value INR 5 each, has been structured to ensure a smooth transfer of ownership while complying fully with SEBI Listing Regulations and corporate governance standards. This issuance strengthens Aurum PropTech’s portfolio and expands its presence in the real estate technology market through PropTiger.

In the process of seeking in-principle approval from stock exchanges under Regulation 28(1) of the Listing Regulations, the company engaged a registered valuer to assess the fairness of the share price for the preferential issue. The valuer issued an addendum dated September 1, 2025, updating the initial valuation report of July 22, 2025. The addendum applied the income approach using the discounted cash flow (DCF) method, a widely recognised technique for valuing companies based on projected future cash flows.

The DCF analysis suggested that the intrinsic value per share of Aurum PropTech is lower than the price determined under SEBI pricing conditions for preferential issues. However, the registered valuer decided to retain the value per share as per the earlier valuation report dated August 18, 2025, which is INR 203.769584 per equity share. This ensures that the preferential issue remains compliant with prior approvals and regulatory requirements.

It is important to note that the addendum has no impact on the special resolution already passed by the shareholders. The resolution approving the preferential issue remains valid, reflecting the confidence of both the board and shareholders in the strategic acquisition and the financial rationale behind the share pricing.

Aurum PropTech has ensured full transparency by making the valuation report and the addendum publicly available on its official website at https://www.aurumproptech.in/investor/preferential-issue. This allows investors, analysts, and other stakeholders to access detailed information about the preferential issue, valuation methodology, and the rationale for retaining the share price despite the DCF analysis.

The preferential issue to REA India Pte Limited signifies a strategic partnership aimed at strengthening Aurum PropTech’s growth trajectory in the real estate technology sector. By acquiring PropTiger Marketing Services Private Limited, Aurum PropTech gains full control over its operations, enabling the company to integrate PropTiger’s technology, customer base, and market reach into its existing business framework.

The use of the discounted cash flow method for valuation demonstrates the company’s commitment to financial prudence and adherence to regulatory standards. While the DCF analysis indicated a lower valuation, retaining the previously approved price per share reflects the company’s strategic decision to honour prior approvals and maintain investor confidence.

This preferential issue also highlights Aurum PropTech’s proactive approach in compliance with SEBI regulations and transparent corporate communication. By engaging a registered valuer and publicly disclosing both the valuation report and the addendum, the company ensures stakeholders are fully informed about significant corporate actions, which is critical for maintaining market trust and shareholder confidence.

Overall, this announcement underscores Aurum PropTech’s strategic growth plans, strong corporate governance, and transparent financial reporting practices. The preferential issue, valuation confirmation, and the PropTiger acquisition together mark a significant milestone in the company’s journey towards consolidating its market presence in India’s real estate technology sector.

Investors, market analysts, and stakeholders are encouraged to review the detailed valuation reports on the official website to fully understand the financial and strategic considerations of this preferential issue. The retention of the previous valuation per share further assures investors that the company is managing the acquisition with careful financial assessment and regulatory compliance.

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