Suraj Estate Developers Ltd. launched its initial public offering on Monday with the intention of raising Rs 400 crore.
The IPO will comprise a fresh issue of 1.11 crore shares. There is no offer for sale.
The price band has been fixed between Rs 340 and Rs 360 per share.
The IPO will close on Dec. 20.
Issue Details
Issue opens: Dec. 18.
Issue closes: Dec. 20.
Face value: Rs 5 per share.
Price band: Rs 340–360 per share.
Lot size: 41 shares.
Fresh issue size: Rs 400 crore.
Total issue size: Rs 400 crore.
Issue type: Book-building process.
Listing: BSE and NSE.
Use of Proceeds
The company will use the net proceeds of the IPO for the following purposes:
Repayment of outstanding borrowings of the company and its subsidiaries, Accord Estates Pvt., Iconic Property Developers Pvt. and Skyline Realty Pvt.
Acquisition of land or land development rights.
General corporate purposes.
Business
The company has developed real estate across the residential and commercial sectors in south-central Mumbai. It has a residential portfolio located in Mahim, Matunga, Dadar, Prabhadevi, and Parel.
Since incorporation, the company has completed 42 projects, with a developed area of more than 1.04 crore square feet in the south-central Mumbai region.
The company also has 13 ongoing projects with a developable area of 20.34 lakh sq ft and a saleable carpet area of 6.09 lakh sq ft. It has 16 upcoming projects with an estimated carpet area of 7.44 lakh sq ft.
Share-Holding Pattern
The promoter's shareholding stake post-issue will decrease to 74.95% compared to 100% stake pre-issue.
Financial Performance Key Metrics
Key Risks
The company is dependent on the performance of its south-central Mumbai region projects.
Inability to complete the ongoing and upcoming projects by their respective completion dates could have a material adverse effect on the business.
As of Oct. 31, the company had a total of 216 unsold units in its ongoing projects. Being unable to sell project inventories promptly may adversely affect business.
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