Suraj Estate Developers refiles draft papers for Rs 400-crore IPO
Agencies
Synopsis
The net proceeds to be raised from the fresh issue will be used towards repayment of debt of the company and its subsidiaries, acquisition of land or land development rights, and other general corporate purposes.
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Mumbai-based real estate company Suraj Estate Developers has refiled its draft papers with the markets regulator Sebi for an IPO. The company had earlier filed its DRHP in March 2022.
The net proceeds to be raised from the fresh issue will be used towards repayment of debt of the company and its subsidiaries, acquisition of land or land development rights, and other general corporate purposes.
The issue is being made through the book-building process wherein 50% will be available for qualified institutional buyers, 15% for non-institutional bidders, and 35% for allocation to retail investors.
Suraj Estate has a longstanding presence of over thirty-six years in the real estate market in Mumbai. It has been developing residential and commercial properties throughout South Central Mumbai. According to an Anarock report, it is one of the top ten developers as per supply (in number of units).
Operating in both residential and commercial real estate, the firm caters to the "value luxury" and "luxury" segments, offering a diverse range of properties priced from Rs 1 crore to Rs 13 crore.
It has constructed and sold built-to-suit corporate headquarters to institutional clients, which include Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar).
The company also plans to foray into developing boutique office spaces on Tulsi Pipe Road, Mahim, to meet the growing demand for smaller independent offices in the commercial segment.
Suraj Estate Developers clocked a profit of Rs 32.06 crore in FY23, against Rs 26.50 crore in the previous year, a rise of 20.98%. Revenue during the year FY23 rose 12% to Rs 306, primarily due to an increase in sales on account of new projects launched in the value luxury segment and additional floor transactions of commercial projects.
The company's profit margin increased to 10.49% in fiscal 2023 from 9.72% in fiscal 2022.
ITI Capital Ltd and Anand Rathi Advisors Ltd are the book running lead managers to the issue.
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The IPO comprises a fresh issue of up to Rs 400 crore, with each equity share having a face value of Rs 5.The net proceeds to be raised from the fresh issue will be used towards repayment of debt of the company and its subsidiaries, acquisition of land or land development rights, and other general corporate purposes.
The issue is being made through the book-building process wherein 50% will be available for qualified institutional buyers, 15% for non-institutional bidders, and 35% for allocation to retail investors.
Suraj Estate has a longstanding presence of over thirty-six years in the real estate market in Mumbai. It has been developing residential and commercial properties throughout South Central Mumbai. According to an Anarock report, it is one of the top ten developers as per supply (in number of units).
Operating in both residential and commercial real estate, the firm caters to the "value luxury" and "luxury" segments, offering a diverse range of properties priced from Rs 1 crore to Rs 13 crore.
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It has constructed and sold built-to-suit corporate headquarters to institutional clients, which include Saraswat Cooperative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar).
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The company also plans to foray into developing boutique office spaces on Tulsi Pipe Road, Mahim, to meet the growing demand for smaller independent offices in the commercial segment.
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Suraj Estate Developers clocked a profit of Rs 32.06 crore in FY23, against Rs 26.50 crore in the previous year, a rise of 20.98%. Revenue during the year FY23 rose 12% to Rs 306, primarily due to an increase in sales on account of new projects launched in the value luxury segment and additional floor transactions of commercial projects.
The company's profit margin increased to 10.49% in fiscal 2023 from 9.72% in fiscal 2022.
ADVERTISEMENT
ITI Capital Ltd and Anand Rathi Advisors Ltd are the book running lead managers to the issue.
