Suraj Estate Developers Limited is a real estate development company. Suraj Estate Developers IPO opened on 18 December 2023 and is set to close on 20 December 2023. After the IPO, the company’s shares will be listed on the BSE and the NSE on 26 December 2023.
The IPO is structured as a Book Built Issue and comprises an offering of 11,111,111 shares, aiming to raise approximately ₹400.00 Crores. Each share has been priced with a face value of ₹5.
This entire issue is a fresh issue of shares, The price band for the IPO is set between ₹340 to ₹360 per share. The lot size for this IPO is fixed at 41 shares, making it accessible for retail investors to participate.
Suraj Estate Developers IPO Details
| IPO | Suraj Estate Developers Limited |
|---|---|
| Open | 18 December 2023 |
| Close | 20 December 2023 |
| Lot Size | 41 Shares |
| IPO Size | 11,111,111 shares (aggregating up to ₹400.00 Cr) |
| IPO Price | ₹340 to ₹360 per share |
| Listing Exchange | BSE, NSE |
| Allotment Date | 21 December 2023 |
| Refunds | 22 December 2023 |
| Demat Account Credit | 22 December 2023 |
| Listing Date | 26 December 2023 |
| RHP | |
| DRHPs |
About Suraj Estate Developers
Suraj Estate Developers, a prominent name in Mumbai’s real estate sector, has been transforming the city’s landscape with its innovative and inspiring projects. With over 35 years of experience, this marquee real estate construction company has become synonymous with quality, trust, and excellence in building spaces that redefine city living.
Founded in 1986, Suraj Estate Developers embarked on a mission to revolutionize real estate in Mumbai. Their journey, spanning more than three decades, is marked by the development of over 10 lakh square feet of land in Mumbai’s prime neighbourhoods. The company’s portfolio includes a diverse range of projects, from residential complexes to commercial spaces, each reflecting its commitment to quality and customer satisfaction.
Suraj Estate Developers’ excellence has been recognized with prestigious awards, including the ‘Best Developer of the Year – Residential’ at the CNN-News18 Real Estate & Business Excellence Awards in 2020. This accolade is a testament to their dedication to creating spaces that are not just buildings but landmarks in their own right.
The company’s current projects, such as The Palette, Ocean Star, Suraj Emmanuel, Louisandra, and Ave Maria, showcase a blend of luxury and innovation. These projects are located in Dadar, Prabhadevi, and Mahim, some of Mumbai’s most sought-after neighbourhoods. The Palette, Dadar’s tallest residential tower, and Ocean Star offering lavish 3 BHK sea view residences in Prabhadevi, are examples of their commitment to providing an upgraded lifestyle.
Suraj Estate Developers is not just about building homes but also about nurturing communities. Their approach to development is community-centric, focusing on responsible innovation and enhancing the quality of life for not just their customers but for the entire community.
Looking ahead, Suraj Estate Developers is poised to continue its legacy of transforming Mumbai’s skyline. With exciting new projects in the pipeline and a commitment to sustainable and innovative development, the future looks bright for this pioneering real estate firm.
Objective of Suraj Estate Developers IPO
Major Debt Repayment: The company plans to allocate a significant portion of ₹2,850 million towards repaying and prepaying existing borrowings of Suraj Estate Developers and its subsidiaries, namely Accord Estates, Iconic Property Developers, and Skyline Realty.
Land Acquisition and Development: An amount of ₹350 million is earmarked for acquiring land or land development rights, indicating a focus on expanding the company’s real estate portfolio.
General Corporate Purposes: A part of the proceeds will also be used for general corporate purposes, with the exact amount to be finalized based on the issue price. This is capped at 25% of the gross proceeds from the issue.
Listing Benefits: The company expects that listing its equity shares on stock exchanges will enhance market visibility and access to capital.
Adherence to Memorandum of Association: The allocation aligns with the company’s Memorandum of Association, supporting both current business activities and the repayment/prepayment of borrowings.
Utilization Schedule: The deployment of funds is scheduled over fiscal years 2024 and 2025, with a detailed allocation plan for debt repayment and land acquisition.
Flexibility in Fund Allocation: The management highlights that the fund allocation is based on internal estimates and may be revised in response to changing market conditions and other external factors.
Provision for Shortfalls: In case of any shortfall, the company may utilize internal accruals or seek additional debt. Unused funds may be redirected towards future growth opportunities or other objectives within legal limits.
Strategic Financial Planning: The company’s approach to the net proceeds from its equity issue demonstrates a balance between reducing debt, expanding assets, and maintaining operational flexibility, positioning it for sustained growth in the real estate sector.
Suraj Estate Developers Company Financial
The Red Herring Prospectus of Suraj Estate Developers provides detailed information about the financial performance of the company. Let’s take a look.
Financial Highlights as of March 31, 2021:
- Total Assets: ₹7,920.01 million
- Non-Current Assets: ₹258.25 million, with notable figures in property, plant, and equipment (₹49.44 million), and intangible assets (₹142.12 million).
- Current Assets: ₹7,661.76 million, dominated by inventories worth ₹5,652.80 million and trade receivables at ₹806.65 million.
- Equity: Total equity stood at ₹293.65 million.
- Liabilities: The company faced significant financial liabilities, including short-term borrowings of ₹1,364.33 million.
- Profit After Tax: The fiscal year ended with ₹62.77 million in profit.
Financial Highlights as of March 31, 2022:
- Total Assets: Increased to ₹8,639.98 million.
- Non-Current Assets: Saw a decrease to ₹233.70 million, with a notable drop in property, plant, and equipment to ₹37.72 million.
- Current Assets: Rose to ₹8,406.28 million, with inventories at ₹6,209.75 million.
- Equity: Improved to ₹393.81 million.
- Liabilities: Short-term borrowings were slightly higher at ₹2,415.53 million.
- Profit After Tax: Increased substantially to ₹265.04 million.
Financial Highlights as of March 31, 2023:
- Total Assets: Further growth to ₹9,425.80 million.
- Non-Current Assets: Increased to ₹508.41 million.
- Current Assets: Continued growth to ₹8,917.39 million, with inventories at ₹6,522.70 million.
- Equity: Reached ₹715.13 million.
- Liabilities: Short-term borrowings stood at ₹2,473.66 million.
- Profit After Tax: Grew to ₹320.64 million.
Financial Performance as of June 30, 2023:
- Total Assets: Reached ₹9,947.28 million.
- Non-Current Assets: Slightly reduced to ₹447.90 million.
- Current Assets: Further rose to ₹9,499.38 million.
- Equity: Marginally increased to ₹860.55 million.
- Liabilities: Short-term borrowings were at ₹2,677.82 million.
- Profit After Tax: For the three-month period, the company posted a profit of ₹145.28 million.
Peer comparison
| Name | P/E | Mar Cap Rs.Cr. |
|---|---|---|
| DLF | 78.09 | 174583.73 |
| Godrej Propert. | 86.41 | 57054.35 |
| Oberoi Realty | 27.38 | 53693.14 |
| Prestige Estates | 26.19 | 44651.98 |
| Phoenix Mills | 46.24 | 41036.53 |
| Brigade Enterpr. | 83.31 | 19699.74 |
| Signature Global | – | 11193.78 |
Apply for the Suraj Estate Developers IPO
You can pre-apply for the Suraj Estate Developers IPO on Upstox. which means the pre-apply open date, usually begins a day before the IPO opens for the subscription. Follow these steps to pre-apply for the IPO:
- Click on the “Open an Account“
- Fill in the required details
- Complete the verifying your identity
- Login to Your Account
- in the IPO section, click the ‘Suraj Estate Developers IPO’ tab
- fill in the required information, like ‘bid price’ and ‘lot size’
- Confirm and click on ‘Pre-Apply’
Suraj Estate Developers IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 41 | ₹14,760 |
| Retail (Max) | 13 | 533 | ₹191,880 |
| S-HNI (Min) | 14 | 574 | ₹206,640 |
| S-HNI (Max) | 67 | 2,747 | ₹988,920 |
| B-HNI (Min) | 68 | 2,788 | ₹1,003,680 |
- QIB Quota:- 50%
- Retail Quota:- 35%
- NII Quota:- 15%
Suraj Estate Developers IPO price?
– The Suraj Estate Developers IPO price band from ₹340 to ₹360 per equity share.
Suraj Estate Developers IPO date?
– The public issue opened on 18 December 2023 and is set to close on 20 December 2023.
Suraj Estate Developers IPO lot size?
– The lot size for the Suraj Estate Developers IPO is 41 equity shares.
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