Suraj Estate Developers IPO ends with decent subscription

Published on Dec 21, 2023 10:13

The IPO of Suraj Estate Developers received bids for 12,88,48,937 shares as against 82,35,293 shares on offer. The issue was subscribed 15.65 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 24.31 times. The Non Institutional Investors (NIIs) category was subscribed 18.90 times. The Retail Individual Investors (RIIs) category was subscribed 9.30 times.

The issue opened for bidding on 18 December 2023 and it closed on 20 December 2023. The price band of the IPO was fixed at Rs 340-360 per share.

The IPO was entirely a fresh Issuance of equity shares with no offer for sale component. The issue comprised a fresh issue of equity shares worth Rs 400 crore.

Of the net proceeds of the issue, the company intend to spend Rs 285 crore towards repayment and prepayment of the aggregate outstanding borrowings of the company and its subsidiaries; Rs 35 crore towards acquisition of land or land development rights and balance for general corporate purposes.

As of 30 September 2023, the company had total financial indebtedness of Rs 568.83 crore and of which about 13.61% is unsecured loans.

Ahead of the IPO, Suraj Estate Developers on 15 December 2023 raised Rs 119.99 crore from anchor investors. The board allotted 33.33 lakh shares at Rs 360 each to 11 anchor investors.

Suraj Estate Developers, founded in 1986 by Rajan Meenathakonil Thomas, is a Mumbai-based real estate developer, with development across the residential and commercial sectors in the south-central Mumbai region. The company specialise in the redevelopment of tenanted properties.

With over 36 years of presence in the real estate market, it has completed 42 projects with a developed area of more than 1,046,543.20 square feet in the south-central Mumbai region.

The firm reported a net profit of Rs 14.53 crore and income from operations of Rs 102.41 crore for the six months ended on 30 September 2023.