12-Dec-2023
2 mins read
Suraj Estate Developers, located in Mumbai, is gearing up to launch its Initial Public Offering (IPO) on December 18, which will remain open until December 20. The real estate firm aims to generate over Rs 400 crore through this public offering without including an offer-for-sale portion. The finalisation of the IPO allotment by Suraj Estate Developers is anticipated for December 21, 2023, with a plan to list the shares on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) around December 26, 2023. The pricing range for the IPO is pending announcement.
The company’s strategy for the funds raised includes allocating Rs 285 crore for settling existing debts and designating around Rs 35 crore for acquiring or developing land rights within the Mumbai Metropolitan Area. The remainder of the IPO proceeds are intended for general corporate uses. The firm has outlined a timeline to utilise the entire budget for land purchases or rights between fiscal 2024 and 2025.
Regarding the distribution of the net offer, over half is reserved for Qualified Institutional Buyers (QIB), a minimum of 35% for retail investors, and at least 15% for High Net-worth Individuals (HNI). Iti Capital Ltd and Anand Rathi Securities Limited are managing the IPO as book-running lead managers, while Link Intime India Private Ltd serves as the registrar.
Rajan Meenathakonil Thomas, the company’s promoter, has steered Suraj Estate to achieve a significant 21% increase in net profit year-over-year, amounting to Rs 32.06 crore in the fiscal year ending March FY23. The firm experienced a remarkable improvement in its financial metrics, as its revenue escalated by 12.1%, culminating in Rs 305.7 crore. In addition, there was a substantial increase of 14.6% in its EBITDA (earnings before interest, tax, depreciation, and amortisation), reaching a total of Rs 151 crore. Moreover, the company saw its margins grow by 110 basis points to 49.4%, largely due to a reduction in the costs of inputs. As of September 2023, Suraj Estate’s consolidated outstanding borrowings stood at Rs 568.83 crore.
Suraj Estate Developers Limited Product Portfolio
Since 1986, Suraj Estate Developers has been actively engaged in the real estate industry, focusing on both residential and commercial developments in South Central Mumbai. The company is now expanding its residential development efforts into the Bandra area. Their residential offerings span the “value luxury” and “luxury” segments, with properties priced between Rs 10.00 million and Rs 130.00 million.
In the commercial realm, Suraj Estate Developers has a track record of constructing and selling customised corporate headquarters to institutional clients, including notable projects for Saraswat Cooperative Bank Limited in Prabhadevi and Clearing Corporation of India Limited in Dadar. Recognising the growing demand for smaller, independent office spaces, they are planning to venture into developing boutique office spaces along Tulsi Pipe Road in Mahim.
From 2016 to the first quarter of 2023, the company embarked on 15 residential projects, with approximately 87% (13 projects) being redevelopment projects. As of March 31, 2023, Suraj Estate Developers has successfully provided free housing redevelopment for over 1,011 tenants under the Development Control and Promotion Regulation, 2034 (Regulation 33(7)). As stated in their Draft Red Herring Prospectus, there are still about 14,207 cessed properties in Mumbai’s island city awaiting redevelopment.
With a strong foothold in the Mahim, Dadar, Prabhadevi, and Parel markets within the South-Central Mumbai micro-market, Suraj Estate Developers is a prominent player and one of the market leaders in these areas. The company stands among the top ten developers in terms of unit supply, commanding a significant 15.92% share of the market. Furthermore, they are also prominent in unit absorption among the leading developers, holding an impressive 16.99% market share.
The Objectives of Suraj Estate Developers Limited IPO
Suraj Estate Developers plans to allocate the funds raised from their upcoming issue for several key objectives. Firstly, they aim to repay or prepay the existing debts of the company along with its subsidiaries, Accord Estates Private Limited and Iconic Property Developers Private Limited. Another significant portion of the proceeds will be used for acquiring land or rights for land development. Lastly, a part of these funds will be reserved for various general corporate activities.
Financial Performance of Suraj Estate Developers (In Rs and Crore)
| Period Ended | 30-Jun-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 994.73 | 942.58 | 864 | 792 |
| Revenue | 102.81 | 307.89 | 273.91 | 244 |
| Profit After Tax | 14.53 | 32.06 | 26.5 | 6.28 |
| Net Worth | 86.11 | 71.39 | 39.16 | 29.15 |
| Reserves and Surplus | 70.29 | 55.48 | 23.32 | 22.94 |
| Total Borrowing | 598.5 | 593.09 | 638.16 | 600.48 |
Important Dates for Suraj Estate Developers Limited IPO (Tentative)
| IPO Date | December 18, 2023 to December 20, 2023 |
| Listing Date | Yet to be announced |
| Face Value | Rs 5 per share |
| Price | ₹340 to ₹360 per share |
| Lot Size | 41 Shares |
| Total Issue Size | Aggregating up to Rs 400.00 Cr |
| Fresh Issue | Aggregating up to Rs 400.00 Cr |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 33,250,000 |
Time Table of Suraj Estate Developers Limited IPO (Tentative)
| IPO Open Date | Monday, December 18, 2023 |
| IPO Close Date | Wednesday, December 20, 2023 |
| Basis of Allotment | Thursday, December 21, 2023 |
| Initiation of Refunds | Friday, December 22, 2023 |
| Credit of Shares to Demat | Friday, December 22, 2023 |
| Listing Date | Tuesday, December 26, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 20, 2023 |
IPO Reservation of Suraj Estate Developers Limited IPO
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Promoter of the Suraj Estate Developers Limited IPO
The promoter of the company is Rajan Meenathakonil Thomas.
Promoter Holding of Suraj Estate Developers IPO
Rajan Meenathakonil Thomas is the promoter of the company.
| Shareholding Pre-Issue | 100% |
| Shareholding Post Issue |
Key Performance Indicator of Suraj Estate Developers IPO
| KPI | Values |
| ROE | 58.18% |
| ROCE | 21.93% |
| Debt/Equity | 8.31 |
| EPS (Rs) | 10.1 |
| RoNW | 58.18% |
Suraj Estate Developers IPO Lead Manager(s)
The lead managers for EbixCash Limited’s IPO are Iti Capital Ltd and Anand Rathi Securities Limited.
How to Apply for Suraj Estate Developers IPO
Wait for the public issue to open for subscription, then click on this link to apply for the Suraj Estate Developers IPO with Bigul https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Suraj Estate Developers’ IPO
The registrar for Suraj Estate Developers IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
- What is the opening date for the Suraj Estate Developers Limited IPO?
The IPO is scheduled to open on Monday, December 18, 2023.
- When will the Suraj Estate Developers Limited IPO close?
The IPO will close on Wednesday, December 20, 2023.
- What is the price band for the IPO?
The price band for the IPO has ₹340 to ₹360 per share.
- How much is the company aiming to raise through the IPO?
The company plans to raise Rs 400 crore through this public offering.
- What is the tentative listing date for the IPO?
The tentative listing date is set for Tuesday, December 26, 2023, on both the NSE and BSE.
- What are the objectives of the IPO?
The primary objectives include repayment/prepayment of outstanding borrowings, acquisition of land or land development rights, and general corporate purposes.
- Who are the book-running lead managers for the IPO?
Iti Capital Ltd and Anand Rathi Securities Limited are the book-running lead managers.
- How can I apply for the Suraj Estate Developers IPO?
You can apply for the IPO once it opens for subscription, through the link provided by Bigul: https://ipo.bonanzaonline.com/.
- How to check the allotment status of the IPO?
The allotment status can be checked on Link Intime India Private Ltd’s website: https://linkintime.co.in/.
- What are the key financial figures of Suraj Estate Developers?
As of June 30, 2023, the company recorded assets worth Rs 994.73 crore, a revenue of Rs 102.81 crore, and a profit after tax of Rs 14.53 crore.
- Who is the promoter of Suraj Estate Developers Limited?
Rajan Meenathakonil Thomas is the promoter of the company.